Correlation Between China Securities and Shaanxi Lighte
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By analyzing existing cross correlation between China Securities 800 and Shaanxi Lighte Optoelectronics, you can compare the effects of market volatilities on China Securities and Shaanxi Lighte 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 Shaanxi Lighte. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shaanxi Lighte.
Diversification Opportunities for China Securities and Shaanxi Lighte
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shaanxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shaanxi Lighte Optoelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Lighte Optoe 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 Shaanxi Lighte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Lighte Optoe has no effect on the direction of China Securities i.e., China Securities and Shaanxi Lighte go up and down completely randomly.
Pair Corralation between China Securities and Shaanxi Lighte
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.37 times more return on investment than Shaanxi Lighte. However, China Securities 800 is 2.69 times less risky than Shaanxi Lighte. It trades about 0.01 of its potential returns per unit of risk. Shaanxi Lighte Optoelectronics is currently generating about -0.13 per unit of risk. If you would invest 410,089 in China Securities 800 on November 3, 2024 and sell it today you would earn a total of 551.00 from holding China Securities 800 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shaanxi Lighte Optoelectronics
Performance |
| Timeline |
China Securities and Shaanxi Lighte Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shaanxi Lighte Optoelectronics
Pair trading matchups for Shaanxi Lighte
Pair Trading with China Securities and Shaanxi Lighte
The main advantage of trading using opposite China Securities and Shaanxi Lighte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shaanxi Lighte 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 Shaanxi Lighte will offset losses from the drop in Shaanxi Lighte's long position.| China Securities vs. Healthcare Co | China Securities vs. Zoje Resources Investment | China Securities vs. Ningbo Ligong Online | China Securities vs. Cultural Investment Holdings |
| Shaanxi Lighte vs. Zijin Mining Group | Shaanxi Lighte vs. Wanhua Chemical Group | Shaanxi Lighte vs. Baoshan Iron Steel | Shaanxi Lighte vs. Shandong Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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