Correlation Between China Securities and Shanghai Metersbonwe
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By analyzing existing cross correlation between China Securities 800 and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on China Securities and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Metersbonwe.
Diversification Opportunities for China Securities and Shanghai Metersbonwe
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of China Securities i.e., China Securities and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Metersbonwe
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.47 times more return on investment than Shanghai Metersbonwe. However, China Securities 800 is 2.15 times less risky than Shanghai Metersbonwe. It trades about 0.04 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.02 per unit of risk. If you would invest 376,673 in China Securities 800 on August 25, 2024 and sell it today you would earn a total of 40,879 from holding China Securities 800 or generate 10.85% 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. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
China Securities and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Metersbonwe FashionAccessories
Pair trading matchups for Shanghai Metersbonwe
Pair Trading with China Securities and Shanghai Metersbonwe
The main advantage of trading using opposite China Securities and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe 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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