Correlation Between China Securities and Jiangsu Zhongtian
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By analyzing existing cross correlation between China Securities 800 and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on China Securities and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jiangsu Zhongtian.
Diversification Opportunities for China Securities and Jiangsu Zhongtian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of China Securities i.e., China Securities and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between China Securities and Jiangsu Zhongtian
Assuming the 90 days trading horizon China Securities is expected to generate 2.18 times less return on investment than Jiangsu Zhongtian. But when comparing it to its historical volatility, China Securities 800 is 2.08 times less risky than Jiangsu Zhongtian. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,629 in Jiangsu Zhongtian Technology on September 26, 2024 and sell it today you would lose (118.00) from holding Jiangsu Zhongtian Technology or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
China Securities and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jiangsu Zhongtian Technology
Pair trading matchups for Jiangsu Zhongtian
Pair Trading with China Securities and Jiangsu Zhongtian
The main advantage of trading using opposite China Securities and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| China Securities vs. Caihong Display Devices | China Securities vs. Keda Clean Energy | China Securities vs. Easyhome New Retail | China Securities vs. Shanghai Yaoji Playing |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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