Correlation Between China Securities and Shandong
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By analyzing existing cross correlation between China Securities 800 and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on China Securities and Shandong 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 Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shandong.
Diversification Opportunities for China Securities and Shandong
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shandong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed 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 Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of China Securities i.e., China Securities and Shandong go up and down completely randomly.
Pair Corralation between China Securities and Shandong
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.81 times more return on investment than Shandong. However, China Securities 800 is 1.24 times less risky than Shandong. It trades about 0.01 of its potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about -0.03 per unit of risk. If you would invest 422,415 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 1,121 from holding China Securities 800 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
China Securities and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shandong Hi Speed RoadBridge
Pair trading matchups for Shandong
Pair Trading with China Securities and Shandong
The main advantage of trading using opposite China Securities and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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