Correlation Between China Securities and Zangge Holding
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By analyzing existing cross correlation between China Securities 800 and Zangge Holding Co, you can compare the effects of market volatilities on China Securities and Zangge Holding 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 Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zangge Holding.
Diversification Opportunities for China Securities and Zangge Holding
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Zangge is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding 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 Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of China Securities i.e., China Securities and Zangge Holding go up and down completely randomly.
Pair Corralation between China Securities and Zangge Holding
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.57 times more return on investment than Zangge Holding. However, China Securities 800 is 1.74 times less risky than Zangge Holding. It trades about 0.17 of its potential returns per unit of risk. Zangge Holding Co is currently generating about 0.02 per unit of risk. If you would invest 414,387 in China Securities 800 on September 27, 2024 and sell it today you would earn a total of 14,462 from holding China Securities 800 or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Zangge Holding Co
Performance |
| Timeline |
China Securities and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zangge Holding Co
Pair trading matchups for Zangge Holding
Pair Trading with China Securities and Zangge Holding
The main advantage of trading using opposite China Securities and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| China Securities vs. Zhongshan Public Utilities | China Securities vs. Jiangsu GDK Biotechnology | China Securities vs. Sichuan Hebang Biotechnology | China Securities vs. Sunny Loan Top |
| Zangge Holding vs. Jointo Energy Investment | Zangge Holding vs. Jiangsu Financial Leasing | Zangge Holding vs. Threes Company Media | Zangge Holding vs. Luyin Investment Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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