Correlation Between China Securities and Simei Media
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By analyzing existing cross correlation between China Securities 800 and Simei Media Co, you can compare the effects of market volatilities on China Securities and Simei Media 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 Simei Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Simei Media.
Diversification Opportunities for China Securities and Simei Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Simei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Simei Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simei 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 Simei Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simei Media has no effect on the direction of China Securities i.e., China Securities and Simei Media go up and down completely randomly.
Pair Corralation between China Securities and Simei Media
Assuming the 90 days trading horizon China Securities is expected to generate 28.2 times less return on investment than Simei Media. But when comparing it to its historical volatility, China Securities 800 is 3.54 times less risky than Simei Media. It trades about 0.0 of its potential returns per unit of risk. Simei Media Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Simei Media Co on September 4, 2024 and sell it today you would earn a total of 152.00 from holding Simei Media Co or generate 32.2% 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. Simei Media Co
Performance |
| Timeline |
China Securities and Simei Media Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Simei Media Co
Pair trading matchups for Simei Media
Pair Trading with China Securities and Simei Media
The main advantage of trading using opposite China Securities and Simei Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Simei Media 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 Simei Media will offset losses from the drop in Simei Media's long position.| China Securities vs. Xiwang Foodstuffs Co | China Securities vs. Beijing Sanyuan Foods | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. GRINM Semiconductor Materials |
| Simei Media vs. Industrial and Commercial | Simei Media vs. China Construction Bank | Simei Media vs. Bank of China | Simei Media vs. Agricultural Bank of |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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