Correlation Between China Securities and Masterwork Machinery
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By analyzing existing cross correlation between China Securities 800 and Masterwork Machinery, you can compare the effects of market volatilities on China Securities and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Masterwork Machinery.
Diversification Opportunities for China Securities and Masterwork Machinery
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Masterwork is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of China Securities i.e., China Securities and Masterwork Machinery go up and down completely randomly.
Pair Corralation between China Securities and Masterwork Machinery
Assuming the 90 days trading horizon China Securities is expected to generate 26.58 times less return on investment than Masterwork Machinery. But when comparing it to its historical volatility, China Securities 800 is 4.06 times less risky than Masterwork Machinery. It trades about 0.01 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Masterwork Machinery on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Masterwork Machinery or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Masterwork Machinery
Performance |
| Timeline |
China Securities and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Masterwork Machinery
Pair trading matchups for Masterwork Machinery
Pair Trading with China Securities and Masterwork Machinery
The main advantage of trading using opposite China Securities and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery'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 |
| Masterwork Machinery vs. New China Life | Masterwork Machinery vs. Ming Yang Smart | Masterwork Machinery vs. 159681 | Masterwork Machinery vs. 159005 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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