Correlation Between China Securities and Shengtak New
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By analyzing existing cross correlation between China Securities 800 and Shengtak New Material, you can compare the effects of market volatilities on China Securities and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shengtak New.
Diversification Opportunities for China Securities and Shengtak New
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shengtak is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of China Securities i.e., China Securities and Shengtak New go up and down completely randomly.
Pair Corralation between China Securities and Shengtak New
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.5 times more return on investment than Shengtak New. However, China Securities 800 is 2.0 times less risky than Shengtak New. It trades about 0.15 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.04 per unit of risk. If you would invest 418,239 in China Securities 800 on September 29, 2024 and sell it today you would earn a total of 11,346 from holding China Securities 800 or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Shengtak New Material
Performance |
| Timeline |
China Securities and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shengtak New Material
Pair trading matchups for Shengtak New
Pair Trading with China Securities and Shengtak New
The main advantage of trading using opposite China Securities and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| China Securities vs. Zhejiang JIULI Hi tech | China Securities vs. Fujian Newland Computer | China Securities vs. Beijing Seeyon Internet | China Securities vs. Maccura Biotechnology Co |
| Shengtak New vs. Hubei Geoway Investment | Shengtak New vs. Jiujiang Shanshui Technology | Shengtak New vs. Changchun UP Optotech | Shengtak New vs. Tieling Newcity Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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