Correlation Between China Securities and Sanan Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Sanan Optoelectronics Co, you can compare the effects of market volatilities on China Securities and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Sanan Optoelectronics.
Diversification Opportunities for China Securities and Sanan Optoelectronics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Sanan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of China Securities i.e., China Securities and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between China Securities and Sanan Optoelectronics
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.55 times more return on investment than Sanan Optoelectronics. However, China Securities 800 is 1.83 times less risky than Sanan Optoelectronics. It trades about -0.15 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about -0.18 per unit of risk. If you would invest 426,787 in China Securities 800 on October 20, 2024 and sell it today you would lose (16,565) from holding China Securities 800 or give up 3.88% 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. Sanan Optoelectronics Co
Performance |
| Timeline |
China Securities and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Sanan Optoelectronics Co
Pair trading matchups for Sanan Optoelectronics
Pair Trading with China Securities and Sanan Optoelectronics
The main advantage of trading using opposite China Securities and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| China Securities vs. Nanjing Putian Telecommunications | China Securities vs. Jiamei Food Packaging | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. Bank of Communications |
| Sanan Optoelectronics vs. Harbin Air Conditioning | Sanan Optoelectronics vs. China Mobile Limited | Sanan Optoelectronics vs. MayAir Technology Co | Sanan Optoelectronics vs. Fibocom Wireless |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |