Correlation Between China Securities and CNPC Capital
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By analyzing existing cross correlation between China Securities 800 and CNPC Capital Co, you can compare the effects of market volatilities on China Securities and CNPC Capital 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 CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and CNPC Capital.
Diversification Opportunities for China Securities and CNPC Capital
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and CNPC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital 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 CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of China Securities i.e., China Securities and CNPC Capital go up and down completely randomly.
Pair Corralation between China Securities and CNPC Capital
Assuming the 90 days trading horizon China Securities is expected to generate 23.48 times less return on investment than CNPC Capital. But when comparing it to its historical volatility, China Securities 800 is 2.49 times less risky than CNPC Capital. It trades about 0.0 of its potential returns per unit of risk. CNPC Capital Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 545.00 in CNPC Capital Co on September 28, 2024 and sell it today you would earn a total of 171.00 from holding CNPC Capital Co or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. CNPC Capital Co
Performance |
| Timeline |
China Securities and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
CNPC Capital Co
Pair trading matchups for CNPC Capital
Pair Trading with China Securities and CNPC Capital
The main advantage of trading using opposite China Securities and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| China Securities vs. Unigroup Guoxin Microelectronics | China Securities vs. Goke Microelectronics Co | China Securities vs. Dongguan Tarry Electronics | China Securities vs. Kunshan Guoli Electronic |
| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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