Correlation Between China Securities and Shaanxi Beiyuan
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By analyzing existing cross correlation between China Securities 800 and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on China Securities and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shaanxi Beiyuan.
Diversification Opportunities for China Securities and Shaanxi Beiyuan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shaanxi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of China Securities i.e., China Securities and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between China Securities and Shaanxi Beiyuan
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.91 times more return on investment than Shaanxi Beiyuan. However, China Securities 800 is 1.1 times less risky than Shaanxi Beiyuan. It trades about 0.0 of its potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about -0.02 per unit of risk. If you would invest 430,950 in China Securities 800 on September 3, 2024 and sell it today you would lose (7,414) from holding China Securities 800 or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
China Securities and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shaanxi Beiyuan Chemical
Pair trading matchups for Shaanxi Beiyuan
Pair Trading with China Securities and Shaanxi Beiyuan
The main advantage of trading using opposite China Securities and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Shaanxi Beiyuan vs. Zijin Mining Group | Shaanxi Beiyuan vs. Baoshan Iron Steel | Shaanxi Beiyuan vs. Hoshine Silicon Ind |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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