Correlation Between China Securities and Suzhou Weizhixiang
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By analyzing existing cross correlation between China Securities 800 and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on China Securities and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Suzhou Weizhixiang.
Diversification Opportunities for China Securities and Suzhou Weizhixiang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of China Securities i.e., China Securities and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between China Securities and Suzhou Weizhixiang
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.61 times more return on investment than Suzhou Weizhixiang. However, China Securities 800 is 1.63 times less risky than Suzhou Weizhixiang. It trades about 0.04 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about -0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
China Securities and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Suzhou Weizhixiang Food
Pair trading matchups for Suzhou Weizhixiang
Pair Trading with China Securities and Suzhou Weizhixiang
The main advantage of trading using opposite China Securities and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang'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 |
| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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