Correlation Between China Securities and Bank of Changsha
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By analyzing existing cross correlation between China Securities 800 and Bank of Changsha, you can compare the effects of market volatilities on China Securities and Bank of Changsha 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 Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Bank of Changsha.
Diversification Opportunities for China Securities and Bank of Changsha
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bank is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Changsha. 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 Changsha has no effect on the direction of China Securities i.e., China Securities and Bank of Changsha go up and down completely randomly.
Pair Corralation between China Securities and Bank of Changsha
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Bank of Changsha. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.1 times less risky than Bank of Changsha. The index trades about -0.14 of its potential returns per unit of risk. The Bank of Changsha is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 852.00 in Bank of Changsha on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Bank of Changsha or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Bank of Changsha
Performance |
| Timeline |
China Securities and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Bank of Changsha
Pair trading matchups for Bank of Changsha
Pair Trading with China Securities and Bank of Changsha
The main advantage of trading using opposite China Securities and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Bank of Changsha 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 Changsha will offset losses from the drop in Bank of Changsha's long position.| China Securities vs. Ningxia Building Materials | China Securities vs. Western Metal Materials | China Securities vs. Ningbo Bohui Chemical | China Securities vs. Hengerda New Materials |
| Bank of Changsha vs. Panda Dairy Corp | Bank of Changsha vs. State Grid InformationCommunication | Bank of Changsha vs. Suzhou Weizhixiang Food | Bank of Changsha vs. Zhongyin Babi Food |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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