Correlation Between China Securities and Bank of XiAn
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By analyzing existing cross correlation between China Securities 800 and Bank of XiAn, you can compare the effects of market volatilities on China Securities and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Bank of XiAn.
Diversification Opportunities for China Securities and Bank of XiAn
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bank is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of China Securities i.e., China Securities and Bank of XiAn go up and down completely randomly.
Pair Corralation between China Securities and Bank of XiAn
Assuming the 90 days trading horizon China Securities is expected to generate 4.97 times less return on investment than Bank of XiAn. But when comparing it to its historical volatility, China Securities 800 is 1.24 times less risky than Bank of XiAn. It trades about 0.01 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Bank of XiAn on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Bank of XiAn or generate 1.37% 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. Bank of XiAn
Performance |
| Timeline |
China Securities and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Bank of XiAn
Pair trading matchups for Bank of XiAn
Pair Trading with China Securities and Bank of XiAn
The main advantage of trading using opposite China Securities and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| China Securities vs. Xiwang Foodstuffs Co | China Securities vs. Beijing Sanyuan Foods | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. GRINM Semiconductor Materials |
| Bank of XiAn vs. Luyin Investment Group | Bank of XiAn vs. Jointo Energy Investment | Bank of XiAn vs. Hunan Investment Group | Bank of XiAn vs. Harbin Hatou Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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