Correlation Between China Securities and Zhejiang Zhengguang
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By analyzing existing cross correlation between China Securities 800 and Zhejiang Zhengguang Industrial, you can compare the effects of market volatilities on China Securities and Zhejiang Zhengguang 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 Zhejiang Zhengguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zhejiang Zhengguang.
Diversification Opportunities for China Securities and Zhejiang Zhengguang
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Zhejiang is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Zhejiang Zhengguang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Zhengguang 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 Zhejiang Zhengguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Zhengguang has no effect on the direction of China Securities i.e., China Securities and Zhejiang Zhengguang go up and down completely randomly.
Pair Corralation between China Securities and Zhejiang Zhengguang
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.37 times more return on investment than Zhejiang Zhengguang. However, China Securities 800 is 2.7 times less risky than Zhejiang Zhengguang. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Zhengguang Industrial is currently generating about 0.01 per unit of risk. If you would invest 375,415 in China Securities 800 on September 3, 2024 and sell it today you would earn a total of 48,121 from holding China Securities 800 or generate 12.82% 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. Zhejiang Zhengguang Industrial
Performance |
| Timeline |
China Securities and Zhejiang Zhengguang Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zhejiang Zhengguang Industrial
Pair trading matchups for Zhejiang Zhengguang
Pair Trading with China Securities and Zhejiang Zhengguang
The main advantage of trading using opposite China Securities and Zhejiang Zhengguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Zhejiang Zhengguang 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 Zhejiang Zhengguang will offset losses from the drop in Zhejiang Zhengguang's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Zhejiang Zhengguang vs. Zijin Mining Group | Zhejiang Zhengguang vs. Baoshan Iron Steel | Zhejiang Zhengguang vs. Rongsheng Petrochemical Co | Zhejiang Zhengguang vs. Hoshine Silicon Ind |
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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