Correlation Between China Securities and Changzhou Evergreen
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By analyzing existing cross correlation between China Securities 800 and Changzhou Evergreen Technology, you can compare the effects of market volatilities on China Securities and Changzhou Evergreen 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 Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Changzhou Evergreen.
Diversification Opportunities for China Securities and Changzhou Evergreen
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Changzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen 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 Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of China Securities i.e., China Securities and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between China Securities and Changzhou Evergreen
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.68 times more return on investment than Changzhou Evergreen. However, China Securities 800 is 1.47 times less risky than Changzhou Evergreen. It trades about 0.05 of its potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about 0.03 per unit of risk. If you would invest 386,430 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 37,106 from holding China Securities 800 or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Changzhou Evergreen Technology
Performance |
| Timeline |
China Securities and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Changzhou Evergreen Technology
Pair trading matchups for Changzhou Evergreen
Pair Trading with China Securities and Changzhou Evergreen
The main advantage of trading using opposite China Securities and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Changzhou Evergreen vs. Wuhan Yangtze Communication | Changzhou Evergreen vs. Sunny Loan Top | Changzhou Evergreen vs. State Grid InformationCommunication | Changzhou Evergreen vs. Anhui Jianghuai 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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