Correlation Between China Securities and Shenzhen Agricultural
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By analyzing existing cross correlation between China Securities 800 and Shenzhen Agricultural Products, you can compare the effects of market volatilities on China Securities and Shenzhen Agricultural 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 China Securities with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen Agricultural.
Diversification Opportunities for China Securities and Shenzhen Agricultural
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and China Securities 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 China Securities 800 are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of China Securities i.e., China Securities and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen Agricultural
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.49 times more return on investment than Shenzhen Agricultural. However, China Securities 800 is 2.06 times less risky than Shenzhen Agricultural. It trades about 0.36 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about -0.3 per unit of risk. If you would invest 409,349 in China Securities 800 on November 29, 2024 and sell it today you would earn a total of 21,640 from holding China Securities 800 or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
China Securities 800 vs. Shenzhen Agricultural Products
Performance |
| Timeline |
China Securities and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen Agricultural Products
Pair trading matchups for Shenzhen Agricultural
Pair Trading with China Securities and Shenzhen Agricultural
The main advantage of trading using opposite China Securities and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| China Securities vs. Tonghua Grape Wine | China Securities vs. Soochow Suzhou Industrial | China Securities vs. Sichuan Yahua Industrial | China Securities vs. Gansu Huangtai Wine marketing |
| Shenzhen Agricultural vs. Bohai Leasing Co | Shenzhen Agricultural vs. Sunny Loan Top | Shenzhen Agricultural vs. Fangda Special Steel | Shenzhen Agricultural vs. Gansu Huangtai Wine marketing |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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