Correlation Between China Securities and Yantai North
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By analyzing existing cross correlation between China Securities 800 and Yantai North Andre, you can compare the effects of market volatilities on China Securities and Yantai North 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 Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Yantai North.
Diversification Opportunities for China Securities and Yantai North
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Yantai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre 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 Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of China Securities i.e., China Securities and Yantai North go up and down completely randomly.
Pair Corralation between China Securities and Yantai North
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Yantai North. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.04 times less risky than Yantai North. The index trades about -0.11 of its potential returns per unit of risk. The Yantai North Andre is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,482 in Yantai North Andre on August 29, 2024 and sell it today you would earn a total of 287.00 from holding Yantai North Andre or generate 11.56% 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. Yantai North Andre
Performance |
| Timeline |
China Securities and Yantai North Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Yantai North Andre
Pair trading matchups for Yantai North
Pair Trading with China Securities and Yantai North
The main advantage of trading using opposite China Securities and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Yantai North vs. Mengtian Home Group | Yantai North vs. Xinjiang Tianrun Dairy | Yantai North vs. Guilin Seamild Foods | Yantai North vs. Nanxing Furniture Machinery |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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