Correlation Between China Securities and Shenzhen SDG
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By analyzing existing cross correlation between China Securities 800 and Shenzhen SDG Service, you can compare the effects of market volatilities on China Securities and Shenzhen SDG 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 Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen SDG.
Diversification Opportunities for China Securities and Shenzhen SDG
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shenzhen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of China Securities i.e., China Securities and Shenzhen SDG go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen SDG
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.42 times more return on investment than Shenzhen SDG. However, China Securities 800 is 2.38 times less risky than Shenzhen SDG. It trades about -0.29 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.49 per unit of risk. If you would invest 432,984 in China Securities 800 on October 12, 2024 and sell it today you would lose (27,815) from holding China Securities 800 or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shenzhen SDG Service
Performance |
| Timeline |
China Securities and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen SDG Service
Pair trading matchups for Shenzhen SDG
Pair Trading with China Securities and Shenzhen SDG
The main advantage of trading using opposite China Securities and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| China Securities vs. Puya Semiconductor Shanghai | China Securities vs. Shanghai Shuixing Home | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Shanghai V Test Semiconductor |
| Shenzhen SDG vs. Beijing Mainstreets Investment | Shenzhen SDG vs. Cultural Investment Holdings | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Anhui Transport Consulting |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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