Correlation Between China Securities and Jiangxi Sunshine
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By analyzing existing cross correlation between China Securities 800 and Jiangxi Sunshine Dairy, you can compare the effects of market volatilities on China Securities and Jiangxi Sunshine 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 Jiangxi Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jiangxi Sunshine.
Diversification Opportunities for China Securities and Jiangxi Sunshine
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiangxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jiangxi Sunshine Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Sunshine Dairy 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 Jiangxi Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Sunshine Dairy has no effect on the direction of China Securities i.e., China Securities and Jiangxi Sunshine go up and down completely randomly.
Pair Corralation between China Securities and Jiangxi Sunshine
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.5 times more return on investment than Jiangxi Sunshine. However, China Securities 800 is 1.98 times less risky than Jiangxi Sunshine. It trades about 0.01 of its potential returns per unit of risk. Jiangxi Sunshine Dairy is currently generating about 0.0 per unit of risk. If you would invest 417,604 in China Securities 800 on September 14, 2024 and sell it today you would earn a total of 19,558 from holding China Securities 800 or generate 4.68% 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. Jiangxi Sunshine Dairy
Performance |
| Timeline |
China Securities and Jiangxi Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jiangxi Sunshine Dairy
Pair trading matchups for Jiangxi Sunshine
Pair Trading with China Securities and Jiangxi Sunshine
The main advantage of trading using opposite China Securities and Jiangxi Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Jiangxi Sunshine 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 Jiangxi Sunshine will offset losses from the drop in Jiangxi Sunshine's long position.| China Securities vs. King Strong New Material | China Securities vs. Zhejiang Xiantong RubberPlastic | China Securities vs. Hangzhou Gaoxin Rubber | China Securities vs. Chongqing Sulian Plastic |
| Jiangxi Sunshine vs. Sinosteel Engineering and | Jiangxi Sunshine vs. Shenwu Energy Saving | Jiangxi Sunshine vs. Ping An Insurance | Jiangxi Sunshine vs. Easyhome New Retail |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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