Correlation Between China Securities and Arrow Home
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By analyzing existing cross correlation between China Securities 800 and Arrow Home Group, you can compare the effects of market volatilities on China Securities and Arrow Home 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 Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Arrow Home.
Diversification Opportunities for China Securities and Arrow Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Arrow is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group 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 Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of China Securities i.e., China Securities and Arrow Home go up and down completely randomly.
Pair Corralation between China Securities and Arrow Home
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.44 times more return on investment than Arrow Home. However, China Securities 800 is 2.27 times less risky than Arrow Home. It trades about -0.01 of its potential returns per unit of risk. Arrow Home Group is currently generating about -0.06 per unit of risk. If you would invest 440,360 in China Securities 800 on August 26, 2024 and sell it today you would lose (22,808) from holding China Securities 800 or give up 5.18% 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. Arrow Home Group
Performance |
| Timeline |
China Securities and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Arrow Home Group
Pair trading matchups for Arrow Home
Pair Trading with China Securities and Arrow Home
The main advantage of trading using opposite China Securities and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home'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 |
| Arrow Home vs. Zhongtong Guomai Communication | Arrow Home vs. Guangdong Shenglu Telecommunication | Arrow Home vs. HanS Laser Tech | Arrow Home vs. Changchun Faway Automobile |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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