Correlation Between China Securities and Hualan Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Hualan Group Co, you can compare the effects of market volatilities on China Securities and Hualan Group 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 Hualan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Hualan Group.
Diversification Opportunities for China Securities and Hualan Group
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hualan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Hualan Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hualan Group 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 Hualan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hualan Group has no effect on the direction of China Securities i.e., China Securities and Hualan Group go up and down completely randomly.
Pair Corralation between China Securities and Hualan Group
Assuming the 90 days trading horizon China Securities is expected to generate 17.39 times less return on investment than Hualan Group. But when comparing it to its historical volatility, China Securities 800 is 3.5 times less risky than Hualan Group. It trades about 0.0 of its potential returns per unit of risk. Hualan Group Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,440 in Hualan Group Co on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Hualan Group Co or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Securities 800 vs. Hualan Group Co
Performance |
| Timeline |
China Securities and Hualan Group Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Hualan Group Co
Pair trading matchups for Hualan Group
Pair Trading with China Securities and Hualan Group
The main advantage of trading using opposite China Securities and Hualan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Hualan Group 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 Hualan Group will offset losses from the drop in Hualan Group's long position.| China Securities vs. Xiwang Foodstuffs Co | China Securities vs. Beijing Sanyuan Foods | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. GRINM Semiconductor Materials |
| Hualan Group vs. Hainan Mining Co | Hualan Group vs. Uroica Mining Safety | Hualan Group vs. Fujian Oriental Silver | Hualan Group vs. Guangdong Silvere Sci |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |