Correlation Between China Securities and Oriental Times
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By analyzing existing cross correlation between China Securities 800 and Oriental Times Media, you can compare the effects of market volatilities on China Securities and Oriental Times 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 Oriental Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Oriental Times.
Diversification Opportunities for China Securities and Oriental Times
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Oriental is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Oriental Times Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Times Media 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 Oriental Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Times Media has no effect on the direction of China Securities i.e., China Securities and Oriental Times go up and down completely randomly.
Pair Corralation between China Securities and Oriental Times
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Oriental Times. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.79 times less risky than Oriental Times. The index trades about -0.01 of its potential returns per unit of risk. The Oriental Times Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Oriental Times Media on August 29, 2024 and sell it today you would earn a total of 141.00 from holding Oriental Times Media or generate 48.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
China Securities 800 vs. Oriental Times Media
Performance |
| Timeline |
China Securities and Oriental Times Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Oriental Times Media
Pair trading matchups for Oriental Times
Pair Trading with China Securities and Oriental Times
The main advantage of trading using opposite China Securities and Oriental Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Oriental Times 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 Oriental Times will offset losses from the drop in Oriental Times' long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
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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