Correlation Between China Securities and Shenzhen Clou
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By analyzing existing cross correlation between China Securities 800 and Shenzhen Clou Electronics, you can compare the effects of market volatilities on China Securities and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen Clou.
Diversification Opportunities for China Securities and Shenzhen Clou
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of China Securities i.e., China Securities and Shenzhen Clou go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen Clou
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.49 times more return on investment than Shenzhen Clou. However, China Securities 800 is 2.04 times less risky than Shenzhen Clou. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.01 per unit of risk. If you would invest 391,152 in China Securities 800 on August 25, 2024 and sell it today you would earn a total of 26,400 from holding China Securities 800 or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shenzhen Clou Electronics
Performance |
| Timeline |
China Securities and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen Clou Electronics
Pair trading matchups for Shenzhen Clou
Pair Trading with China Securities and Shenzhen Clou
The main advantage of trading using opposite China Securities and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou'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 |
| Shenzhen Clou vs. Sunwave Communications Co | Shenzhen Clou vs. Zhejiang Qianjiang Motorcycle | Shenzhen Clou vs. Chongqing Brewery Co | Shenzhen Clou vs. State Grid InformationCommunication |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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