Correlation Between China Securities and Porton Fine
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By analyzing existing cross correlation between China Securities 800 and Porton Fine Chemicals, you can compare the effects of market volatilities on China Securities and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Porton Fine.
Diversification Opportunities for China Securities and Porton Fine
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Porton is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of China Securities i.e., China Securities and Porton Fine go up and down completely randomly.
Pair Corralation between China Securities and Porton Fine
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.36 times more return on investment than Porton Fine. However, China Securities 800 is 2.75 times less risky than Porton Fine. It trades about 0.01 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.02 per unit of risk. If you would invest 417,960 in China Securities 800 on August 31, 2024 and sell it today you would earn a total of 5,576 from holding China Securities 800 or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Porton Fine Chemicals
Performance |
| Timeline |
China Securities and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Porton Fine Chemicals
Pair trading matchups for Porton Fine
Pair Trading with China Securities and Porton Fine
The main advantage of trading using opposite China Securities and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Porton Fine vs. PetroChina Co Ltd | Porton Fine vs. China Mobile Limited | Porton Fine vs. Ping An Insurance | Porton Fine vs. China Petroleum Chemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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