Correlation Between China Securities and Shandong Sanyuan
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By analyzing existing cross correlation between China Securities 800 and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on China Securities and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shandong Sanyuan.
Diversification Opportunities for China Securities and Shandong Sanyuan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shandong is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of China Securities i.e., China Securities and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between China Securities and Shandong Sanyuan
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.57 times more return on investment than Shandong Sanyuan. However, China Securities 800 is 1.75 times less risky than Shandong Sanyuan. It trades about 0.02 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 401,347 in China Securities 800 on August 25, 2024 and sell it today you would earn a total of 16,205 from holding China Securities 800 or generate 4.04% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
China Securities and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shandong Sanyuan Biotechnology
Pair trading matchups for Shandong Sanyuan
Pair Trading with China Securities and Shandong Sanyuan
The main advantage of trading using opposite China Securities and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| China Securities vs. Zhejiang Yayi Metal | China Securities vs. Huatian Hotel Group | China Securities vs. Semiconductor Manufacturing Electronics | China Securities vs. Dalian Thermal Power |
| Shandong Sanyuan vs. Aluminum Corp of | Shandong Sanyuan vs. COL Digital Publishing | Shandong Sanyuan vs. Shaanxi Meineng Clean | Shandong Sanyuan vs. Gansu Huangtai Wine marketing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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