Correlation Between China Securities and Xiamen ITG
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Xiamen ITG Group, you can compare the effects of market volatilities on China Securities and Xiamen ITG 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 Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Xiamen ITG.
Diversification Opportunities for China Securities and Xiamen ITG
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Xiamen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group 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 Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of China Securities i.e., China Securities and Xiamen ITG go up and down completely randomly.
Pair Corralation between China Securities and Xiamen ITG
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.87 times more return on investment than Xiamen ITG. However, China Securities 800 is 1.15 times less risky than Xiamen ITG. It trades about 0.0 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about -0.03 per unit of risk. If you would invest 421,099 in China Securities 800 on August 31, 2024 and sell it today you would lose (1,295) from holding China Securities 800 or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Xiamen ITG Group
Performance |
| Timeline |
China Securities and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Xiamen ITG Group
Pair trading matchups for Xiamen ITG
Pair Trading with China Securities and Xiamen ITG
The main advantage of trading using opposite China Securities and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Xiamen ITG vs. HeNan Splendor Science | Xiamen ITG vs. Hainan Mining Co | Xiamen ITG vs. Sichuan Yahua Industrial | Xiamen ITG vs. Industrial Bank Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |