Correlation Between China Securities and Guangdong Transtek
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By analyzing existing cross correlation between China Securities 800 and Guangdong Transtek Medical, you can compare the effects of market volatilities on China Securities and Guangdong Transtek 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 Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Guangdong Transtek.
Diversification Opportunities for China Securities and Guangdong Transtek
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Guangdong is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek 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 Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of China Securities i.e., China Securities and Guangdong Transtek go up and down completely randomly.
Pair Corralation between China Securities and Guangdong Transtek
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.17 times more return on investment than Guangdong Transtek. However, China Securities 800 is 6.06 times less risky than Guangdong Transtek. It trades about -0.29 of its potential returns per unit of risk. Guangdong Transtek Medical is currently generating about -0.11 per unit of risk. If you would invest 432,984 in China Securities 800 on October 12, 2024 and sell it today you would lose (27,815) from holding China Securities 800 or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Guangdong Transtek Medical
Performance |
| Timeline |
China Securities and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Guangdong Transtek Medical
Pair trading matchups for Guangdong Transtek
Pair Trading with China Securities and Guangdong Transtek
The main advantage of trading using opposite China Securities and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek'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 |
| Guangdong Transtek vs. Shenzhen Silver Basis | Guangdong Transtek vs. Tianjin Silvery Dragon | Guangdong Transtek vs. Mango Excellent Media | Guangdong Transtek vs. Jiangxi Naipu Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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