Correlation Between China Securities and Beijing Zhong
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By analyzing existing cross correlation between China Securities 800 and Beijing Zhong Ke, you can compare the effects of market volatilities on China Securities and Beijing Zhong 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 Beijing Zhong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing Zhong.
Diversification Opportunities for China Securities and Beijing Zhong
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing Zhong Ke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhong Ke 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 Beijing Zhong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhong Ke has no effect on the direction of China Securities i.e., China Securities and Beijing Zhong go up and down completely randomly.
Pair Corralation between China Securities and Beijing Zhong
Assuming the 90 days trading horizon China Securities is expected to generate 3.77 times less return on investment than Beijing Zhong. But when comparing it to its historical volatility, China Securities 800 is 1.47 times less risky than Beijing Zhong. It trades about 0.04 of its potential returns per unit of risk. Beijing Zhong Ke is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 811.00 in Beijing Zhong Ke on August 28, 2024 and sell it today you would earn a total of 261.00 from holding Beijing Zhong Ke or generate 32.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
China Securities 800 vs. Beijing Zhong Ke
Performance |
| Timeline |
China Securities and Beijing Zhong Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing Zhong Ke
Pair trading matchups for Beijing Zhong
Pair Trading with China Securities and Beijing Zhong
The main advantage of trading using opposite China Securities and Beijing Zhong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing Zhong 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 Beijing Zhong will offset losses from the drop in Beijing Zhong's long position.| China Securities vs. Beijing Mainstreets Investment | China Securities vs. Dareway Software Co | China Securities vs. Shanghai Metersbonwe FashionAccessories | China Securities vs. Guangzhou Seagull Kitchen |
| Beijing Zhong vs. Advanced Technology Materials | Beijing Zhong vs. Hubei Dinglong Chemical | Beijing Zhong vs. Grinm Advanced Materials | Beijing Zhong vs. Shenzhen Topway Video |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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