Correlation Between China Securities and Strait Innovation
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By analyzing existing cross correlation between China Securities 800 and Strait Innovation Internet, you can compare the effects of market volatilities on China Securities and Strait Innovation 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 Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Strait Innovation.
Diversification Opportunities for China Securities and Strait Innovation
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Strait is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation 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 Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of China Securities i.e., China Securities and Strait Innovation go up and down completely randomly.
Pair Corralation between China Securities and Strait Innovation
Assuming the 90 days trading horizon China Securities is expected to generate 11.28 times less return on investment than Strait Innovation. But when comparing it to its historical volatility, China Securities 800 is 2.82 times less risky than Strait Innovation. It trades about 0.03 of its potential returns per unit of risk. Strait Innovation Internet is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Strait Innovation Internet on October 13, 2024 and sell it today you would earn a total of 114.00 from holding Strait Innovation Internet or generate 83.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Strait Innovation Internet
Performance |
| Timeline |
China Securities and Strait Innovation Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Strait Innovation Internet
Pair trading matchups for Strait Innovation
Pair Trading with China Securities and Strait Innovation
The main advantage of trading using opposite China Securities and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.| China Securities vs. Puya Semiconductor Shanghai | China Securities vs. Shanghai Shuixing Home | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Shanghai V Test Semiconductor |
| Strait Innovation vs. Mango Excellent Media | Strait Innovation vs. Shandong Longquan Pipeline | Strait Innovation vs. Qilu Bank Co | Strait Innovation vs. Changjiang Publishing Media |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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