Correlation Between China Securities and 159560
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By analyzing existing cross correlation between China Securities 800 and 159560, you can compare the effects of market volatilities on China Securities and 159560 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 159560. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and 159560.
Diversification Opportunities for China Securities and 159560
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and 159560 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and 159560 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159560 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 159560. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159560 has no effect on the direction of China Securities i.e., China Securities and 159560 go up and down completely randomly.
Pair Corralation between China Securities and 159560
Assuming the 90 days trading horizon China Securities is expected to generate 3.82 times less return on investment than 159560. But when comparing it to its historical volatility, China Securities 800 is 1.6 times less risky than 159560. It trades about 0.05 of its potential returns per unit of risk. 159560 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 81.00 in 159560 on August 30, 2024 and sell it today you would earn a total of 31.00 from holding 159560 or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. 159560
Performance |
| Timeline |
China Securities and 159560 Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
159560
Pair trading matchups for 159560
Pair Trading with China Securities and 159560
The main advantage of trading using opposite China Securities and 159560 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, 159560 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 159560 will offset losses from the drop in 159560's long position.| China Securities vs. Anhui Huaren Health | China Securities vs. Everjoy Health Group | China Securities vs. Meinian Onehealth Healthcare | China Securities vs. Shanghai Rongtai Health |
| 159560 vs. Shenzhen MTC Co | 159560 vs. Ming Yang Smart | 159560 vs. Changzhou Almaden Co | 159560 vs. 159681 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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