Correlation Between China Securities and Chongqing Road
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By analyzing existing cross correlation between China Securities 800 and Chongqing Road Bridge, you can compare the effects of market volatilities on China Securities and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Chongqing Road.
Diversification Opportunities for China Securities and Chongqing Road
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Chongqing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of China Securities i.e., China Securities and Chongqing Road go up and down completely randomly.
Pair Corralation between China Securities and Chongqing Road
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Chongqing Road. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.46 times less risky than Chongqing Road. The index trades about 0.0 of its potential returns per unit of risk. The Chongqing Road Bridge is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 537.00 in Chongqing Road Bridge on August 29, 2024 and sell it today you would earn a total of 109.00 from holding Chongqing Road Bridge or generate 20.3% 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. Chongqing Road Bridge
Performance |
| Timeline |
China Securities and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Chongqing Road Bridge
Pair trading matchups for Chongqing Road
Pair Trading with China Securities and Chongqing Road
The main advantage of trading using opposite China Securities and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Chongqing Road vs. Aofu Environmental Technology | Chongqing Road vs. Everdisplay Optronics Shanghai | Chongqing Road vs. Lander Sports Development | Chongqing Road vs. Guangzhou Ruoyuchen Information |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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