Correlation Between China Securities and Soyea Technology
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By analyzing existing cross correlation between China Securities 800 and Soyea Technology Co, you can compare the effects of market volatilities on China Securities and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Soyea Technology.
Diversification Opportunities for China Securities and Soyea Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Soyea is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of China Securities i.e., China Securities and Soyea Technology go up and down completely randomly.
Pair Corralation between China Securities and Soyea Technology
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Soyea Technology. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.28 times less risky than Soyea Technology. The index trades about -0.11 of its potential returns per unit of risk. The Soyea Technology Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Soyea Technology Co on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Soyea Technology Co or generate 14.2% 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. Soyea Technology Co
Performance |
| Timeline |
China Securities and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Soyea Technology Co
Pair trading matchups for Soyea Technology
Pair Trading with China Securities and Soyea Technology
The main advantage of trading using opposite China Securities and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Soyea Technology vs. Cambricon Technologies Corp | Soyea Technology vs. Empyrean Technology Co | Soyea Technology vs. Kuang Chi Technologies | Soyea Technology vs. Gansu Jiu Steel |
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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