Correlation Between China Securities and China Yangtze
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By analyzing existing cross correlation between China Securities 800 and China Yangtze Power, you can compare the effects of market volatilities on China Securities and China Yangtze 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 China Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and China Yangtze.
Diversification Opportunities for China Securities and China Yangtze
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and China is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and China Yangtze Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yangtze Power 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 China Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yangtze Power has no effect on the direction of China Securities i.e., China Securities and China Yangtze go up and down completely randomly.
Pair Corralation between China Securities and China Yangtze
Assuming the 90 days trading horizon China Securities 800 is expected to generate 1.56 times more return on investment than China Yangtze. However, China Securities is 1.56 times more volatile than China Yangtze Power. It trades about -0.04 of its potential returns per unit of risk. China Yangtze Power is currently generating about -0.09 per unit of risk. If you would invest 427,943 in China Securities 800 on August 29, 2024 and sell it today you would lose (6,053) from holding China Securities 800 or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. China Yangtze Power
Performance |
| Timeline |
China Securities and China Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
China Yangtze Power
Pair trading matchups for China Yangtze
Pair Trading with China Securities and China Yangtze
The main advantage of trading using opposite China Securities and China Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, China Yangtze 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 China Yangtze will offset losses from the drop in China Yangtze's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| China Yangtze vs. Guizhou BroadcastingTV Info | China Yangtze vs. Hunan Investment Group | China Yangtze vs. Tieling Newcity Investment | China Yangtze vs. Fujian Longzhou Transportation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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