Correlation Between China Securities and Zhongshan Public
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By analyzing existing cross correlation between China Securities 800 and Zhongshan Public Utilities, you can compare the effects of market volatilities on China Securities and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zhongshan Public.
Diversification Opportunities for China Securities and Zhongshan Public
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Zhongshan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of China Securities i.e., China Securities and Zhongshan Public go up and down completely randomly.
Pair Corralation between China Securities and Zhongshan Public
Assuming the 90 days trading horizon China Securities is expected to generate 2.13 times less return on investment than Zhongshan Public. But when comparing it to its historical volatility, China Securities 800 is 1.21 times less risky than Zhongshan Public. It trades about 0.05 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 724.00 in Zhongshan Public Utilities on August 31, 2024 and sell it today you would earn a total of 167.00 from holding Zhongshan Public Utilities or generate 23.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Zhongshan Public Utilities
Performance |
| Timeline |
China Securities and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zhongshan Public Utilities
Pair trading matchups for Zhongshan Public
Pair Trading with China Securities and Zhongshan Public
The main advantage of trading using opposite China Securities and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Zhongshan Public vs. Marssenger Kitchenware Co | Zhongshan Public vs. Huaxia Fund Management | Zhongshan Public vs. Everdisplay Optronics Shanghai | Zhongshan Public vs. Chongqing Brewery 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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