Correlation Between China Securities and Zhongzhu Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on China Securities and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zhongzhu Medical.
Diversification Opportunities for China Securities and Zhongzhu Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zhongzhu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of China Securities i.e., China Securities and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between China Securities and Zhongzhu Medical
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.59 times more return on investment than Zhongzhu Medical. However, China Securities 800 is 1.7 times less risky than Zhongzhu Medical. It trades about 0.02 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.01 per unit of risk. If you would invest 414,911 in China Securities 800 on September 13, 2024 and sell it today you would earn a total of 22,251 from holding China Securities 800 or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
China Securities and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zhongzhu Medical Holdings
Pair trading matchups for Zhongzhu Medical
Pair Trading with China Securities and Zhongzhu Medical
The main advantage of trading using opposite China Securities and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.The idea behind China Securities 800 and Zhongzhu Medical Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Zhongzhu Medical vs. CITIC Guoan Information | Zhongzhu Medical vs. Dawning Information Industry | Zhongzhu Medical vs. Keda Clean Energy | Zhongzhu Medical vs. Tongding Interconnection 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |