Correlation Between China Securities and Sinomine Resource
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By analyzing existing cross correlation between China Securities 800 and Sinomine Resource Exploration, you can compare the effects of market volatilities on China Securities and Sinomine Resource 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 Sinomine Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Sinomine Resource.
Diversification Opportunities for China Securities and Sinomine Resource
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Sinomine is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Sinomine Resource Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomine Resource 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 Sinomine Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomine Resource has no effect on the direction of China Securities i.e., China Securities and Sinomine Resource go up and down completely randomly.
Pair Corralation between China Securities and Sinomine Resource
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.4 times more return on investment than Sinomine Resource. However, China Securities 800 is 2.5 times less risky than Sinomine Resource. It trades about -0.02 of its potential returns per unit of risk. Sinomine Resource Exploration is currently generating about -0.02 per unit of risk. If you would invest 454,590 in China Securities 800 on October 15, 2024 and sell it today you would lose (54,856) from holding China Securities 800 or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Sinomine Resource Exploration
Performance |
| Timeline |
China Securities and Sinomine Resource Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Sinomine Resource Exploration
Pair trading matchups for Sinomine Resource
Pair Trading with China Securities and Sinomine Resource
The main advantage of trading using opposite China Securities and Sinomine Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Sinomine Resource 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 Sinomine Resource will offset losses from the drop in Sinomine Resource's long position.| China Securities vs. Sunwave Communications Co | China Securities vs. Dongfeng Automobile Co | China Securities vs. Nanjing Vishee Medical | China Securities vs. Haima Automobile Group |
| Sinomine Resource vs. Shanghai Phichem Material | Sinomine Resource vs. Dr Peng Telecom | Sinomine Resource vs. Bank of Communications | Sinomine Resource vs. Jinsanjiang Silicon Material |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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