Correlation Between China Securities and CCB Principal
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By analyzing existing cross correlation between China Securities 800 and CCB Principal SZSE, you can compare the effects of market volatilities on China Securities and CCB Principal 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 CCB Principal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and CCB Principal.
Diversification Opportunities for China Securities and CCB Principal
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and CCB is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and CCB Principal SZSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCB Principal SZSE 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 CCB Principal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCB Principal SZSE has no effect on the direction of China Securities i.e., China Securities and CCB Principal go up and down completely randomly.
Pair Corralation between China Securities and CCB Principal
Assuming the 90 days trading horizon China Securities 800 is expected to generate 1.21 times more return on investment than CCB Principal. However, China Securities is 1.21 times more volatile than CCB Principal SZSE. It trades about -0.03 of its potential returns per unit of risk. CCB Principal SZSE is currently generating about -0.12 per unit of risk. If you would invest 423,442 in China Securities 800 on August 30, 2024 and sell it today you would lose (5,203) from holding China Securities 800 or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. CCB Principal SZSE
Performance |
| Timeline |
China Securities and CCB Principal Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
CCB Principal SZSE
Pair trading matchups for CCB Principal
Pair Trading with China Securities and CCB Principal
The main advantage of trading using opposite China Securities and CCB Principal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, CCB Principal 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 CCB Principal will offset losses from the drop in CCB Principal'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 |
| CCB Principal vs. Shenzhen MTC Co | CCB Principal vs. Ming Yang Smart | CCB Principal vs. Changzhou Almaden Co | CCB Principal 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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