Correlation Between China Securities and Shenzhen Inovance
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Shenzhen Inovance Tech, you can compare the effects of market volatilities on China Securities and Shenzhen Inovance 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 Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen Inovance.
Diversification Opportunities for China Securities and Shenzhen Inovance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of China Securities i.e., China Securities and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen Inovance
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.54 times more return on investment than Shenzhen Inovance. However, China Securities 800 is 1.86 times less risky than Shenzhen Inovance. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.03 per unit of risk. If you would invest 421,890 in China Securities 800 on September 28, 2024 and sell it today you would earn a total of 7,695 from holding China Securities 800 or generate 1.82% 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. Shenzhen Inovance Tech
Performance |
| Timeline |
China Securities and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen Inovance Tech
Pair trading matchups for Shenzhen Inovance
Pair Trading with China Securities and Shenzhen Inovance
The main advantage of trading using opposite China Securities and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| China Securities vs. Unigroup Guoxin Microelectronics | China Securities vs. Goke Microelectronics Co | China Securities vs. Dongguan Tarry Electronics | China Securities vs. Kunshan Guoli Electronic |
| Shenzhen Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |