Correlation Between China Securities and Sino Medical
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By analyzing existing cross correlation between China Securities 800 and Sino Medical Sciences, you can compare the effects of market volatilities on China Securities and Sino Medical 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Sino Medical.
Diversification Opportunities for China Securities and Sino Medical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Sino is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of China Securities i.e., China Securities and Sino Medical go up and down completely randomly.
Pair Corralation between China Securities and Sino Medical
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Sino Medical. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 3.39 times less risky than Sino Medical. The index trades about 0.0 of its potential returns per unit of risk. The Sino Medical Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Sino Medical Sciences on August 31, 2024 and sell it today you would earn a total of 101.00 from holding Sino Medical Sciences or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Sino Medical Sciences
Performance |
| Timeline |
China Securities and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Sino Medical Sciences
Pair trading matchups for Sino Medical
Pair Trading with China Securities and Sino Medical
The main advantage of trading using opposite China Securities and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Sino Medical 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Sino Medical vs. PetroChina Co Ltd | Sino Medical vs. China Mobile Limited | Sino Medical vs. Ping An Insurance | Sino Medical vs. China Petroleum Chemical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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