Correlation Between China Securities and Linktel Technologies
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By analyzing existing cross correlation between China Securities 800 and Linktel Technologies Co, you can compare the effects of market volatilities on China Securities and Linktel Technologies 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 Linktel Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Linktel Technologies.
Diversification Opportunities for China Securities and Linktel Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Linktel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Linktel Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linktel Technologies 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 Linktel Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linktel Technologies has no effect on the direction of China Securities i.e., China Securities and Linktel Technologies go up and down completely randomly.
Pair Corralation between China Securities and Linktel Technologies
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Linktel Technologies. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 4.73 times less risky than Linktel Technologies. The index trades about -0.01 of its potential returns per unit of risk. The Linktel Technologies Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,364 in Linktel Technologies Co on October 30, 2024 and sell it today you would earn a total of 4,769 from holding Linktel Technologies Co or generate 141.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Linktel Technologies Co
Performance |
| Timeline |
China Securities and Linktel Technologies Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Linktel Technologies Co
Pair trading matchups for Linktel Technologies
Pair Trading with China Securities and Linktel Technologies
The main advantage of trading using opposite China Securities and Linktel Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Linktel Technologies 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 Linktel Technologies will offset losses from the drop in Linktel Technologies' long position.| China Securities vs. Sinocelltech Group | China Securities vs. Jinhe Biotechnology Co | China Securities vs. Olympic Circuit Technology | China Securities vs. Eyebright Medical Technology |
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.
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