Correlation Between China Securities and Shanghai Rural
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By analyzing existing cross correlation between China Securities 800 and Shanghai Rural Commercial, you can compare the effects of market volatilities on China Securities and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Rural.
Diversification Opportunities for China Securities and Shanghai Rural
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of China Securities i.e., China Securities and Shanghai Rural go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Rural
Assuming the 90 days trading horizon China Securities is expected to generate 14.71 times less return on investment than Shanghai Rural. In addition to that, China Securities is 1.08 times more volatile than Shanghai Rural Commercial. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Rural Commercial is currently generating about 0.24 per unit of volatility. If you would invest 775.00 in Shanghai Rural Commercial on September 1, 2024 and sell it today you would earn a total of 57.00 from holding Shanghai Rural Commercial or generate 7.35% 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. Shanghai Rural Commercial
Performance |
| Timeline |
China Securities and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Rural Commercial
Pair trading matchups for Shanghai Rural
Pair Trading with China Securities and Shanghai Rural
The main advantage of trading using opposite China Securities and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Shanghai Rural vs. Fuzhou Rockchip Electronics | Shanghai Rural vs. Shanghai Broadband Technology | Shanghai Rural vs. Shandong Hi Speed RoadBridge | Shanghai Rural vs. Longjian Road Bridge |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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