Correlation Between Zhongshan Public and China Securities
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By analyzing existing cross correlation between Zhongshan Public Utilities and China Securities 800, you can compare the effects of market volatilities on Zhongshan Public and China Securities and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zhongshan Public with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and China Securities.
Diversification Opportunities for Zhongshan Public and China Securities
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongshan and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Zhongshan Public is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zhongshan Public Utilities are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and China Securities go up and down completely randomly.
Pair Corralation between Zhongshan Public and China Securities
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 1.45 times more return on investment than China Securities. However, Zhongshan Public is 1.45 times more volatile than China Securities 800. It trades about 0.29 of its potential returns per unit of risk. China Securities 800 is currently generating about 0.17 per unit of risk. If you would invest 860.00 in Zhongshan Public Utilities on September 27, 2024 and sell it today you would earn a total of 73.00 from holding Zhongshan Public Utilities or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. China Securities 800
Performance |
| Timeline |
Zhongshan Public and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Zhongshan Public Utilities
Pair trading matchups for Zhongshan Public
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Zhongshan Public and China Securities
The main advantage of trading using opposite Zhongshan Public and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, China Securities can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Securities will offset losses from the drop in China Securities' long position.| Zhongshan Public vs. Anhui Deli Household | Zhongshan Public vs. Pengxin International Mining | Zhongshan Public vs. Shandong Hi Speed RoadBridge | Zhongshan Public vs. Guangzhou Seagull Kitchen |
| China Securities vs. Zhongshan Public Utilities | China Securities vs. Jiangsu GDK Biotechnology | China Securities vs. Sichuan Hebang Biotechnology | China Securities vs. Sunny Loan Top |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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