Correlation Between China Securities and National Silicon
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By analyzing existing cross correlation between China Securities 800 and National Silicon Industry, you can compare the effects of market volatilities on China Securities and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and National Silicon.
Diversification Opportunities for China Securities and National Silicon
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and National is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of China Securities i.e., China Securities and National Silicon go up and down completely randomly.
Pair Corralation between China Securities and National Silicon
Assuming the 90 days trading horizon China Securities is expected to generate 5.16 times less return on investment than National Silicon. But when comparing it to its historical volatility, China Securities 800 is 2.47 times less risky than National Silicon. It trades about 0.05 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,367 in National Silicon Industry on September 1, 2024 and sell it today you would earn a total of 790.00 from holding National Silicon Industry or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Securities 800 vs. National Silicon Industry
Performance |
| Timeline |
China Securities and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
National Silicon Industry
Pair trading matchups for National Silicon
Pair Trading with China Securities and National Silicon
The main advantage of trading using opposite China Securities and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| National Silicon vs. Industrial and Commercial | National Silicon vs. Kweichow Moutai Co | National Silicon vs. Agricultural Bank of | National Silicon vs. China Mobile Limited |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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