Correlation Between China Securities and NBTM New
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By analyzing existing cross correlation between China Securities 800 and NBTM New Materials, you can compare the effects of market volatilities on China Securities and NBTM New 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 NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and NBTM New.
Diversification Opportunities for China Securities and NBTM New
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and NBTM is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials 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 NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of China Securities i.e., China Securities and NBTM New go up and down completely randomly.
Pair Corralation between China Securities and NBTM New
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the NBTM New. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.84 times less risky than NBTM New. The index trades about 0.0 of its potential returns per unit of risk. The NBTM New Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 998.00 in NBTM New Materials on September 29, 2024 and sell it today you would earn a total of 708.00 from holding NBTM New Materials or generate 70.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
China Securities 800 vs. NBTM New Materials
Performance |
| Timeline |
China Securities and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
NBTM New Materials
Pair trading matchups for NBTM New
Pair Trading with China Securities and NBTM New
The main advantage of trading using opposite China Securities and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| China Securities vs. Zhejiang JIULI Hi tech | China Securities vs. Fujian Newland Computer | China Securities vs. Beijing Seeyon Internet | China Securities vs. Maccura Biotechnology Co |
| NBTM New vs. Thinkon Semiconductor Jinzhou | NBTM New vs. Vats Liquor Chain | NBTM New vs. Keda Clean Energy | NBTM New vs. Sportsoul Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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