Correlation Between China Securities and Changsha DIALINE
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By analyzing existing cross correlation between China Securities 800 and Changsha DIALINE New, you can compare the effects of market volatilities on China Securities and Changsha DIALINE 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 DIALINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Changsha DIALINE.
Diversification Opportunities for China Securities and Changsha DIALINE
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Changsha is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Changsha DIALINE New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha DIALINE New 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 DIALINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha DIALINE New has no effect on the direction of China Securities i.e., China Securities and Changsha DIALINE go up and down completely randomly.
Pair Corralation between China Securities and Changsha DIALINE
Assuming the 90 days trading horizon China Securities is expected to generate 8.89 times less return on investment than Changsha DIALINE. But when comparing it to its historical volatility, China Securities 800 is 2.96 times less risky than Changsha DIALINE. It trades about 0.01 of its potential returns per unit of risk. Changsha DIALINE New is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Changsha DIALINE New on September 4, 2024 and sell it today you would earn a total of 10.00 from holding Changsha DIALINE New or generate 1.18% 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. Changsha DIALINE New
Performance |
| Timeline |
China Securities and Changsha DIALINE Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Changsha DIALINE New
Pair trading matchups for Changsha DIALINE
Pair Trading with China Securities and Changsha DIALINE
The main advantage of trading using opposite China Securities and Changsha DIALINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Changsha DIALINE 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 DIALINE will offset losses from the drop in Changsha DIALINE's long position.| China Securities vs. Xiwang Foodstuffs Co | China Securities vs. Beijing Sanyuan Foods | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. GRINM Semiconductor Materials |
| Changsha DIALINE vs. Shanghai Yaoji Playing | Changsha DIALINE vs. Qingdao Foods Co | Changsha DIALINE vs. Jiajia Food Group | Changsha DIALINE vs. Youyou Foods Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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