Correlation Between China Securities and VT Industrial
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By analyzing existing cross correlation between China Securities 800 and VT Industrial Technology, you can compare the effects of market volatilities on China Securities and VT Industrial 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 VT Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and VT Industrial.
Diversification Opportunities for China Securities and VT Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and 300707 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and VT Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VT Industrial Technology 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 VT Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VT Industrial Technology has no effect on the direction of China Securities i.e., China Securities and VT Industrial go up and down completely randomly.
Pair Corralation between China Securities and VT Industrial
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.36 times more return on investment than VT Industrial. However, China Securities 800 is 2.81 times less risky than VT Industrial. It trades about -0.14 of its potential returns per unit of risk. VT Industrial Technology is currently generating about -0.14 per unit of risk. If you would invest 449,702 in China Securities 800 on September 12, 2024 and sell it today you would lose (17,204) from holding China Securities 800 or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. VT Industrial Technology
Performance |
| Timeline |
China Securities and VT Industrial Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
VT Industrial Technology
Pair trading matchups for VT Industrial
Pair Trading with China Securities and VT Industrial
The main advantage of trading using opposite China Securities and VT Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, VT Industrial 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 VT Industrial will offset losses from the drop in VT Industrial's long position.| China Securities vs. Ningxia Building Materials | China Securities vs. Western Metal Materials | China Securities vs. Ningbo Bohui Chemical | China Securities vs. Hengerda New Materials |
| VT Industrial vs. North Huajin Chemical | VT Industrial vs. Hubei Dinglong Chemical | VT Industrial vs. Xiangyang Automobile Bearing | VT Industrial vs. Dongfeng Automobile 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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