Correlation Between China Securities and East Money
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By analyzing existing cross correlation between China Securities 800 and East Money Information, you can compare the effects of market volatilities on China Securities and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and East Money.
Diversification Opportunities for China Securities and East Money
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and East is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of China Securities i.e., China Securities and East Money go up and down completely randomly.
Pair Corralation between China Securities and East Money
Assuming the 90 days trading horizon China Securities is expected to generate 39.86 times less return on investment than East Money. But when comparing it to its historical volatility, China Securities 800 is 3.56 times less risky than East Money. It trades about 0.01 of its potential returns per unit of risk. East Money Information is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,319 in East Money Information on September 1, 2024 and sell it today you would earn a total of 407.00 from holding East Money Information or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. East Money Information
Performance |
| Timeline |
China Securities and East Money Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
East Money Information
Pair trading matchups for East Money
Pair Trading with China Securities and East Money
The main advantage of trading using opposite China Securities and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| East Money vs. Cambricon Technologies Corp | East Money vs. Loongson Technology Corp | East Money vs. Shenzhen Fortune Trend | East Money vs. Chongqing Road Bridge |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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