Correlation Between China Securities and Yuan Longping
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By analyzing existing cross correlation between China Securities 800 and Yuan Longping High tech, you can compare the effects of market volatilities on China Securities and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Yuan Longping.
Diversification Opportunities for China Securities and Yuan Longping
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Yuan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of China Securities i.e., China Securities and Yuan Longping go up and down completely randomly.
Pair Corralation between China Securities and Yuan Longping
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.62 times more return on investment than Yuan Longping. However, China Securities 800 is 1.62 times less risky than Yuan Longping. It trades about 0.0 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.04 per unit of risk. If you would invest 432,707 in China Securities 800 on August 26, 2024 and sell it today you would lose (15,155) from holding China Securities 800 or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Yuan Longping High tech
Performance |
| Timeline |
China Securities and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Yuan Longping High tech
Pair trading matchups for Yuan Longping
Pair Trading with China Securities and Yuan Longping
The main advantage of trading using opposite China Securities and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| China Securities vs. Yuan Longping High tech | China Securities vs. Saurer Intelligent Technology | China Securities vs. Fujian Rongji Software | China Securities vs. Jinhui Liquor Co |
| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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