Correlation Between China Securities and ACM Research
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By analyzing existing cross correlation between China Securities 800 and ACM Research Shanghai, you can compare the effects of market volatilities on China Securities and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and ACM Research.
Diversification Opportunities for China Securities and ACM Research
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and ACM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of China Securities i.e., China Securities and ACM Research go up and down completely randomly.
Pair Corralation between China Securities and ACM Research
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the ACM Research. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.61 times less risky than ACM Research. The index trades about -0.02 of its potential returns per unit of risk. The ACM Research Shanghai is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,533 in ACM Research Shanghai on October 15, 2024 and sell it today you would earn a total of 1,065 from holding ACM Research Shanghai or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Securities 800 vs. ACM Research Shanghai
Performance |
| Timeline |
China Securities and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
ACM Research Shanghai
Pair trading matchups for ACM Research
Pair Trading with China Securities and ACM Research
The main advantage of trading using opposite China Securities and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research'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 |
| ACM Research vs. Shenzhen Topway Video | ACM Research vs. Emdoor Information Co | ACM Research vs. Kidswant Children Products | ACM Research vs. Chinese Universe Publishing |
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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