Correlation Between China Securities and China Citic
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By analyzing existing cross correlation between China Securities 800 and China Citic Bank, you can compare the effects of market volatilities on China Securities and China Citic 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 Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and China Citic.
Diversification Opportunities for China Securities and China Citic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of China Securities i.e., China Securities and China Citic go up and down completely randomly.
Pair Corralation between China Securities and China Citic
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.91 times more return on investment than China Citic. However, China Securities 800 is 1.1 times less risky than China Citic. It trades about 0.04 of its potential returns per unit of risk. China Citic Bank is currently generating about -0.02 per unit of risk. If you would invest 387,522 in China Securities 800 on August 28, 2024 and sell it today you would earn a total of 26,951 from holding China Securities 800 or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. China Citic Bank
Performance |
| Timeline |
China Securities and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
China Citic Bank
Pair trading matchups for China Citic
Pair Trading with China Securities and China Citic
The main advantage of trading using opposite China Securities and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, China Citic 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 Citic will offset losses from the drop in China Citic's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| China Citic vs. Agricultural Bank of | China Citic vs. Industrial and Commercial | China Citic vs. Bank of China | China Citic vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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