Correlation Between China Securities and XJ Electric
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By analyzing existing cross correlation between China Securities 800 and XJ Electric Co, you can compare the effects of market volatilities on China Securities and XJ Electric 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 XJ Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and XJ Electric.
Diversification Opportunities for China Securities and XJ Electric
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and 000400 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and XJ Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XJ Electric 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 XJ Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XJ Electric has no effect on the direction of China Securities i.e., China Securities and XJ Electric go up and down completely randomly.
Pair Corralation between China Securities and XJ Electric
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.71 times more return on investment than XJ Electric. However, China Securities 800 is 1.4 times less risky than XJ Electric. It trades about 0.05 of its potential returns per unit of risk. XJ Electric Co is currently generating about -0.06 per unit of risk. If you would invest 386,988 in China Securities 800 on September 3, 2024 and sell it today you would earn a total of 36,548 from holding China Securities 800 or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. XJ Electric Co
Performance |
| Timeline |
China Securities and XJ Electric Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
XJ Electric Co
Pair trading matchups for XJ Electric
Pair Trading with China Securities and XJ Electric
The main advantage of trading using opposite China Securities and XJ Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, XJ Electric 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 XJ Electric will offset losses from the drop in XJ Electric's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| XJ Electric vs. Heilongjiang Transport Development | XJ Electric vs. Tengda Construction Group | XJ Electric vs. Anhui Huilong Agricultural | XJ Electric vs. Zhejiang Yayi Metal |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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