Correlation Between China Securities and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Xiamen Jihong Package, you can compare the effects of market volatilities on China Securities and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Xiamen Jihong.
Diversification Opportunities for China Securities and Xiamen Jihong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xiamen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of China Securities i.e., China Securities and Xiamen Jihong go up and down completely randomly.
Pair Corralation between China Securities and Xiamen Jihong
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Xiamen Jihong. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.56 times less risky than Xiamen Jihong. The index trades about -0.1 of its potential returns per unit of risk. The Xiamen Jihong Package is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,271 in Xiamen Jihong Package on August 28, 2024 and sell it today you would earn a total of 210.00 from holding Xiamen Jihong Package or generate 16.52% 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. Xiamen Jihong Package
Performance |
| Timeline |
China Securities and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Xiamen Jihong Package
Pair trading matchups for Xiamen Jihong
Pair Trading with China Securities and Xiamen Jihong
The main advantage of trading using opposite China Securities and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Shandong Gold Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |