Correlation Between China Securities and Chongqing Zhifei
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By analyzing existing cross correlation between China Securities 800 and Chongqing Zhifei Bio, you can compare the effects of market volatilities on China Securities and Chongqing Zhifei 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 Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Chongqing Zhifei.
Diversification Opportunities for China Securities and Chongqing Zhifei
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Chongqing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of China Securities i.e., China Securities and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between China Securities and Chongqing Zhifei
Assuming the 90 days trading horizon China Securities is expected to generate 1.89 times less return on investment than Chongqing Zhifei. But when comparing it to its historical volatility, China Securities 800 is 2.53 times less risky than Chongqing Zhifei. It trades about 0.31 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,409 in Chongqing Zhifei Bio on November 28, 2024 and sell it today you would earn a total of 201.00 from holding Chongqing Zhifei Bio or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Chongqing Zhifei Bio
Performance |
| Timeline |
China Securities and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Chongqing Zhifei Bio
Pair trading matchups for Chongqing Zhifei
Pair Trading with China Securities and Chongqing Zhifei
The main advantage of trading using opposite China Securities and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| China Securities vs. Hainan Haiqi Transportation | China Securities vs. Allwin Telecommunication Co | China Securities vs. Suzhou Mingzhi Technology | China Securities vs. BTG Hotels Group |
| Chongqing Zhifei vs. Shenzhen Kexin Communication | Chongqing Zhifei vs. Nuode Investment Co | Chongqing Zhifei vs. Zhejiang Construction Investment | Chongqing Zhifei vs. CICT Mobile Communication |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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