Correlation Between China Securities and Gree Real
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By analyzing existing cross correlation between China Securities 800 and Gree Real Estate, you can compare the effects of market volatilities on China Securities and Gree Real 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 Gree Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Gree Real.
Diversification Opportunities for China Securities and Gree Real
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Gree is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Gree Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gree Real Estate 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 Gree Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gree Real Estate has no effect on the direction of China Securities i.e., China Securities and Gree Real go up and down completely randomly.
Pair Corralation between China Securities and Gree Real
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Gree Real. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.46 times less risky than Gree Real. The index trades about -0.1 of its potential returns per unit of risk. The Gree Real Estate is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Gree Real Estate on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Gree Real Estate or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Securities 800 vs. Gree Real Estate
Performance |
| Timeline |
China Securities and Gree Real Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Gree Real Estate
Pair trading matchups for Gree Real
Pair Trading with China Securities and Gree Real
The main advantage of trading using opposite China Securities and Gree Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Gree Real 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 Gree Real will offset losses from the drop in Gree Real's long position.| China Securities vs. Beijing Mainstreets Investment | China Securities vs. Dareway Software Co | China Securities vs. Shanghai Metersbonwe FashionAccessories | China Securities vs. Guangzhou Seagull Kitchen |
| Gree Real vs. Industrial and Commercial | Gree Real vs. China Construction Bank | Gree Real vs. Bank of China | Gree Real vs. Agricultural Bank of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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