Correlation Between China Securities and Kunshan Guoli
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By analyzing existing cross correlation between China Securities 800 and Kunshan Guoli Electronic, you can compare the effects of market volatilities on China Securities and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Kunshan Guoli.
Diversification Opportunities for China Securities and Kunshan Guoli
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Kunshan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of China Securities i.e., China Securities and Kunshan Guoli go up and down completely randomly.
Pair Corralation between China Securities and Kunshan Guoli
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.33 times more return on investment than Kunshan Guoli. However, China Securities 800 is 3.01 times less risky than Kunshan Guoli. It trades about -0.11 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.07 per unit of risk. If you would invest 427,943 in China Securities 800 on August 29, 2024 and sell it today you would lose (15,836) from holding China Securities 800 or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Kunshan Guoli Electronic
Performance |
| Timeline |
China Securities and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Kunshan Guoli Electronic
Pair trading matchups for Kunshan Guoli
Pair Trading with China Securities and Kunshan Guoli
The main advantage of trading using opposite China Securities and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli'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 |
| Kunshan Guoli vs. China State Construction | Kunshan Guoli vs. Huafa Industrial Co | Kunshan Guoli vs. China International Capital | Kunshan Guoli vs. Kweichow Moutai Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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