Correlation Between China Securities and Cofco Biochemical
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By analyzing existing cross correlation between China Securities 800 and Cofco Biochemical Anhui, you can compare the effects of market volatilities on China Securities and Cofco Biochemical 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 Cofco Biochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Cofco Biochemical.
Diversification Opportunities for China Securities and Cofco Biochemical
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Cofco is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Cofco Biochemical Anhui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofco Biochemical Anhui 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 Cofco Biochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofco Biochemical Anhui has no effect on the direction of China Securities i.e., China Securities and Cofco Biochemical go up and down completely randomly.
Pair Corralation between China Securities and Cofco Biochemical
Assuming the 90 days trading horizon China Securities is expected to generate 4.02 times less return on investment than Cofco Biochemical. In addition to that, China Securities is 1.0 times more volatile than Cofco Biochemical Anhui. It trades about 0.03 of its total potential returns per unit of risk. Cofco Biochemical Anhui is currently generating about 0.1 per unit of volatility. If you would invest 574.00 in Cofco Biochemical Anhui on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Cofco Biochemical Anhui or generate 3.14% 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. Cofco Biochemical Anhui
Performance |
| Timeline |
China Securities and Cofco Biochemical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Cofco Biochemical Anhui
Pair trading matchups for Cofco Biochemical
Pair Trading with China Securities and Cofco Biochemical
The main advantage of trading using opposite China Securities and Cofco Biochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Cofco Biochemical 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 Cofco Biochemical will offset losses from the drop in Cofco Biochemical's long position.| China Securities vs. Omnijoi Media Corp | China Securities vs. Gansu Jiu Steel | China Securities vs. Dalian Zeus Entertainment | China Securities vs. JiShi Media Co |
| Cofco Biochemical vs. Liaoning Chengda Biotechnology | Cofco Biochemical vs. Changchun BCHT Biotechnology | Cofco Biochemical vs. Wuhan Hvsen Biotechnology | Cofco Biochemical vs. Maccura Biotechnology 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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