Correlation Between China Securities and Chengdu B
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By analyzing existing cross correlation between China Securities 800 and Chengdu B ray Media, you can compare the effects of market volatilities on China Securities and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Chengdu B.
Diversification Opportunities for China Securities and Chengdu B
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Chengdu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of China Securities i.e., China Securities and Chengdu B go up and down completely randomly.
Pair Corralation between China Securities and Chengdu B
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Chengdu B. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.64 times less risky than Chengdu B. The index trades about -0.02 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 463.00 in Chengdu B ray Media on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Chengdu B ray Media or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.5% |
| Values | Daily Returns |
China Securities 800 vs. Chengdu B ray Media
Performance |
| Timeline |
China Securities and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Chengdu B ray Media
Pair trading matchups for Chengdu B
Pair Trading with China Securities and Chengdu B
The main advantage of trading using opposite China Securities and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. BYD Co Ltd | Chengdu B vs. Agricultural Bank of | Chengdu B vs. Industrial and Commercial | Chengdu B vs. China State Construction |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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