Correlation Between China Securities and Changsha Jingjia
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By analyzing existing cross correlation between China Securities 800 and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on China Securities and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Changsha Jingjia.
Diversification Opportunities for China Securities and Changsha Jingjia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Changsha is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of China Securities i.e., China Securities and Changsha Jingjia go up and down completely randomly.
Pair Corralation between China Securities and Changsha Jingjia
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Changsha Jingjia. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 3.53 times less risky than Changsha Jingjia. The index trades about -0.02 of its potential returns per unit of risk. The Changsha Jingjia Microelectronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,045 in Changsha Jingjia Microelectronics on October 16, 2024 and sell it today you would earn a total of 2,777 from holding Changsha Jingjia Microelectronics or generate 45.94% 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. Changsha Jingjia Microelectron
Performance |
| Timeline |
China Securities and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Changsha Jingjia Microelectronics
Pair trading matchups for Changsha Jingjia
Pair Trading with China Securities and Changsha Jingjia
The main advantage of trading using opposite China Securities and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.| China Securities vs. Eastroc Beverage Group | China Securities vs. Sinomach General Machinery | China Securities vs. Hongrun Construction Group | China Securities vs. Great Sun Foods Co |
| Changsha Jingjia vs. Inspur Software Co | Changsha Jingjia vs. China Minmetals Rare | Changsha Jingjia vs. Dareway Software Co | Changsha Jingjia vs. Universal Scientific Industrial |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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