Correlation Between China Securities and Contec Medical
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By analyzing existing cross correlation between China Securities 800 and Contec Medical Systems, you can compare the effects of market volatilities on China Securities and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Contec Medical.
Diversification Opportunities for China Securities and Contec Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Contec is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of China Securities i.e., China Securities and Contec Medical go up and down completely randomly.
Pair Corralation between China Securities and Contec Medical
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.56 times more return on investment than Contec Medical. However, China Securities 800 is 1.78 times less risky than Contec Medical. It trades about 0.05 of its potential returns per unit of risk. Contec Medical Systems is currently generating about 0.02 per unit of risk. If you would invest 386,365 in China Securities 800 on August 29, 2024 and sell it today you would earn a total of 35,525 from holding China Securities 800 or generate 9.19% 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. Contec Medical Systems
Performance |
| Timeline |
China Securities and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Contec Medical Systems
Pair trading matchups for Contec Medical
Pair Trading with China Securities and Contec Medical
The main advantage of trading using opposite China Securities and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Contec Medical vs. Industrial and Commercial | Contec Medical vs. China Construction Bank | Contec Medical vs. Agricultural Bank of | Contec Medical vs. Bank of China |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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