Correlation Between China Securities and Xian International
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By analyzing existing cross correlation between China Securities 800 and Xian International Medical, you can compare the effects of market volatilities on China Securities and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Xian International.
Diversification Opportunities for China Securities and Xian International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Xian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of China Securities i.e., China Securities and Xian International go up and down completely randomly.
Pair Corralation between China Securities and Xian International
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Xian International. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.88 times less risky than Xian International. The index trades about -0.11 of its potential returns per unit of risk. The Xian International Medical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 559.00 in Xian International Medical on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Xian International Medical or generate 1.79% 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. Xian International Medical
Performance |
| Timeline |
China Securities and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Xian International Medical
Pair trading matchups for Xian International
Pair Trading with China Securities and Xian International
The main advantage of trading using opposite China Securities and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Xian International vs. China Petroleum Chemical | Xian International vs. PetroChina Co Ltd | Xian International vs. China State Construction | Xian International vs. China Railway 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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