Correlation Between China Securities and Beijing Zhidemai
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By analyzing existing cross correlation between China Securities 800 and Beijing Zhidemai Technology, you can compare the effects of market volatilities on China Securities and Beijing Zhidemai 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 Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing Zhidemai.
Diversification Opportunities for China Securities and Beijing Zhidemai
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec 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 Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of China Securities i.e., China Securities and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between China Securities and Beijing Zhidemai
Assuming the 90 days trading horizon China Securities is expected to generate 20.04 times less return on investment than Beijing Zhidemai. But when comparing it to its historical volatility, China Securities 800 is 4.99 times less risky than Beijing Zhidemai. It trades about 0.01 of its potential returns per unit of risk. Beijing Zhidemai Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,841 in Beijing Zhidemai Technology on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Beijing Zhidemai Technology or generate 4.33% 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. Beijing Zhidemai Technology
Performance |
| Timeline |
China Securities and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing Zhidemai Technology
Pair trading matchups for Beijing Zhidemai
Pair Trading with China Securities and Beijing Zhidemai
The main advantage of trading using opposite China Securities and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing Zhidemai 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 Beijing Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Beijing Zhidemai vs. Lotus Health Group | Beijing Zhidemai vs. Ligao Foods CoLtd | Beijing Zhidemai vs. Yankershop Food Co | Beijing Zhidemai vs. Yunnan Jianzhijia Health Chain |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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