Correlation Between China Securities and Xinjiang Sailing
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By analyzing existing cross correlation between China Securities 800 and Xinjiang Sailing Information, you can compare the effects of market volatilities on China Securities and Xinjiang Sailing 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 Xinjiang Sailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Xinjiang Sailing.
Diversification Opportunities for China Securities and Xinjiang Sailing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Xinjiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Xinjiang Sailing Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Sailing Inf 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 Xinjiang Sailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Sailing Inf has no effect on the direction of China Securities i.e., China Securities and Xinjiang Sailing go up and down completely randomly.
Pair Corralation between China Securities and Xinjiang Sailing
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.27 times more return on investment than Xinjiang Sailing. However, China Securities 800 is 3.75 times less risky than Xinjiang Sailing. It trades about -0.11 of its potential returns per unit of risk. Xinjiang Sailing Information is currently generating about -0.21 per unit of risk. If you would invest 424,271 in China Securities 800 on October 24, 2024 and sell it today you would lose (11,550) from holding China Securities 800 or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Xinjiang Sailing Information
Performance |
| Timeline |
China Securities and Xinjiang Sailing Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Xinjiang Sailing Information
Pair trading matchups for Xinjiang Sailing
Pair Trading with China Securities and Xinjiang Sailing
The main advantage of trading using opposite China Securities and Xinjiang Sailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Xinjiang Sailing 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 Xinjiang Sailing will offset losses from the drop in Xinjiang Sailing's long position.| China Securities vs. Anhui Shiny Electronic | China Securities vs. Aurora Optoelectronics Co | China Securities vs. Success Electronics | China Securities vs. Sihui Fuji Electronics |
| Xinjiang Sailing vs. Queclink Wireless Solutions | Xinjiang Sailing vs. Ziel Home Furnishing | Xinjiang Sailing vs. Vohringer Home Technology | Xinjiang Sailing vs. Oppein Home Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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