Correlation Between China Securities and Shenzhen MTC
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By analyzing existing cross correlation between China Securities 800 and Shenzhen MTC Co, you can compare the effects of market volatilities on China Securities and Shenzhen MTC 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 MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen MTC.
Diversification Opportunities for China Securities and Shenzhen MTC
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of China Securities i.e., China Securities and Shenzhen MTC go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen MTC
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.66 times more return on investment than Shenzhen MTC. However, China Securities 800 is 1.5 times less risky than Shenzhen MTC. It trades about 0.01 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.07 per unit of risk. If you would invest 422,415 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 1,121 from holding China Securities 800 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Shenzhen MTC Co
Performance |
| Timeline |
China Securities and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen MTC Co
Pair trading matchups for Shenzhen MTC
Pair Trading with China Securities and Shenzhen MTC
The main advantage of trading using opposite China Securities and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen MTC 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 MTC will offset losses from the drop in Shenzhen MTC'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 |
| Shenzhen MTC vs. Jinling Hotel Corp | Shenzhen MTC vs. Nuode Investment Co | Shenzhen MTC vs. Cultural Investment Holdings | Shenzhen MTC vs. Chahua Modern Housewares |
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 CEOs Directory module to screen CEOs from public companies around the world.
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