Correlation Between China Securities and Anhui Conch
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By analyzing existing cross correlation between China Securities 800 and Anhui Conch Cement, you can compare the effects of market volatilities on China Securities and Anhui Conch 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 Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Anhui Conch.
Diversification Opportunities for China Securities and Anhui Conch
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Anhui is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement 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 Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of China Securities i.e., China Securities and Anhui Conch go up and down completely randomly.
Pair Corralation between China Securities and Anhui Conch
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.84 times more return on investment than Anhui Conch. However, China Securities 800 is 1.19 times less risky than Anhui Conch. It trades about 0.05 of its potential returns per unit of risk. Anhui Conch Cement is currently generating about 0.03 per unit of risk. If you would invest 386,430 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 37,106 from holding China Securities 800 or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Anhui Conch Cement
Performance |
| Timeline |
China Securities and Anhui Conch Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Anhui Conch Cement
Pair trading matchups for Anhui Conch
Pair Trading with China Securities and Anhui Conch
The main advantage of trading using opposite China Securities and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Anhui Conch vs. Zijin Mining Group | Anhui Conch vs. Wanhua Chemical Group | Anhui Conch vs. Baoshan Iron Steel | Anhui Conch vs. Shandong Gold Mining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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