Correlation Between China Securities and Long Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Long Yuan Construction, you can compare the effects of market volatilities on China Securities and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Long Yuan.
Diversification Opportunities for China Securities and Long Yuan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Long is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of China Securities i.e., China Securities and Long Yuan go up and down completely randomly.
Pair Corralation between China Securities and Long Yuan
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.4 times more return on investment than Long Yuan. However, China Securities 800 is 2.51 times less risky than Long Yuan. It trades about -0.1 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.1 per unit of risk. If you would invest 427,943 in China Securities 800 on August 28, 2024 and sell it today you would lose (13,470) from holding China Securities 800 or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Long Yuan Construction
Performance |
| Timeline |
China Securities and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Long Yuan Construction
Pair trading matchups for Long Yuan
Pair Trading with China Securities and Long Yuan
The main advantage of trading using opposite China Securities and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |