Correlation Between China Securities and Changshu Ruite
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By analyzing existing cross correlation between China Securities 800 and Changshu Ruite Electric, you can compare the effects of market volatilities on China Securities and Changshu Ruite 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 Changshu Ruite. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Changshu Ruite.
Diversification Opportunities for China Securities and Changshu Ruite
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Changshu is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Changshu Ruite Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Ruite Electric 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 Changshu Ruite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Ruite Electric has no effect on the direction of China Securities i.e., China Securities and Changshu Ruite go up and down completely randomly.
Pair Corralation between China Securities and Changshu Ruite
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Changshu Ruite. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.64 times less risky than Changshu Ruite. The index trades about -0.02 of its potential returns per unit of risk. The Changshu Ruite Electric is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 698.00 in Changshu Ruite Electric on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Changshu Ruite Electric or generate 3.72% 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. Changshu Ruite Electric
Performance |
| Timeline |
China Securities and Changshu Ruite Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Changshu Ruite Electric
Pair trading matchups for Changshu Ruite
Pair Trading with China Securities and Changshu Ruite
The main advantage of trading using opposite China Securities and Changshu Ruite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Changshu Ruite 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 Changshu Ruite will offset losses from the drop in Changshu Ruite's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Changshu Ruite vs. Keda Clean Energy | Changshu Ruite vs. Juneyao Airlines | Changshu Ruite vs. Longjian Road Bridge | Changshu Ruite vs. Fujian Longzhou Transportation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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