Correlation Between China Securities and Shenzhen New
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By analyzing existing cross correlation between China Securities 800 and Shenzhen New Nanshan, you can compare the effects of market volatilities on China Securities and Shenzhen New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen New.
Diversification Opportunities for China Securities and Shenzhen New
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shenzhen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of China Securities i.e., China Securities and Shenzhen New go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen New
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.5 times more return on investment than Shenzhen New. However, China Securities 800 is 2.01 times less risky than Shenzhen New. It trades about 0.0 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.04 per unit of risk. If you would invest 430,950 in China Securities 800 on September 3, 2024 and sell it today you would lose (7,414) from holding China Securities 800 or give up 1.72% 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. Shenzhen New Nanshan
Performance |
| Timeline |
China Securities and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen New Nanshan
Pair trading matchups for Shenzhen New
Pair Trading with China Securities and Shenzhen New
The main advantage of trading using opposite China Securities and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Shenzhen New vs. Chengdu B ray Media | Shenzhen New vs. Lonkey Industrial Co | Shenzhen New vs. Yoantion Industrial IncLtd | Shenzhen New vs. Dalian Zeus Entertainment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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