Correlation Between China Securities and GuoChuang Software
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By analyzing existing cross correlation between China Securities 800 and GuoChuang Software Co, you can compare the effects of market volatilities on China Securities and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and GuoChuang Software.
Diversification Opportunities for China Securities and GuoChuang Software
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and GuoChuang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of China Securities i.e., China Securities and GuoChuang Software go up and down completely randomly.
Pair Corralation between China Securities and GuoChuang Software
Assuming the 90 days trading horizon China Securities is expected to generate 7.91 times less return on investment than GuoChuang Software. But when comparing it to its historical volatility, China Securities 800 is 3.24 times less risky than GuoChuang Software. It trades about 0.01 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,495 in GuoChuang Software Co on August 31, 2024 and sell it today you would earn a total of 76.00 from holding GuoChuang Software Co or generate 3.05% 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. GuoChuang Software Co
Performance |
| Timeline |
China Securities and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
GuoChuang Software Co
Pair trading matchups for GuoChuang Software
Pair Trading with China Securities and GuoChuang Software
The main advantage of trading using opposite China Securities and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software'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 |
| GuoChuang Software vs. Kweichow Moutai Co | GuoChuang Software vs. NAURA Technology Group | GuoChuang Software vs. APT Medical | GuoChuang Software vs. Contemporary Amperex 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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