Correlation Between China Securities and Guangzhou Fangbang
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By analyzing existing cross correlation between China Securities 800 and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on China Securities and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Guangzhou Fangbang.
Diversification Opportunities for China Securities and Guangzhou Fangbang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of China Securities i.e., China Securities and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between China Securities and Guangzhou Fangbang
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.37 times more return on investment than Guangzhou Fangbang. However, China Securities 800 is 2.7 times less risky than Guangzhou Fangbang. It trades about -0.03 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about -0.02 per unit of risk. If you would invest 411,565 in China Securities 800 on October 15, 2024 and sell it today you would lose (11,831) from holding China Securities 800 or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Guangzhou Fangbang Electronics
Performance |
| Timeline |
China Securities and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Guangzhou Fangbang Electronics
Pair trading matchups for Guangzhou Fangbang
Pair Trading with China Securities and Guangzhou Fangbang
The main advantage of trading using opposite China Securities and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang's long position.| China Securities vs. Zhongyin Babi Food | China Securities vs. Anji Foodstuff Co | China Securities vs. Anhui Huaheng Biotechnology | China Securities vs. Shandong Sanyuan Biotechnology |
| Guangzhou Fangbang vs. Universal Scientific Industrial | Guangzhou Fangbang vs. Jiaozuo Wanfang Aluminum | Guangzhou Fangbang vs. Porton Fine Chemicals | Guangzhou Fangbang vs. Shanghai Yanpu Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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