Correlation Between China Securities and Road Environment
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By analyzing existing cross correlation between China Securities 800 and Road Environment Technology, you can compare the effects of market volatilities on China Securities and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Road Environment.
Diversification Opportunities for China Securities and Road Environment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Road is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of China Securities i.e., China Securities and Road Environment go up and down completely randomly.
Pair Corralation between China Securities and Road Environment
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.46 times more return on investment than Road Environment. However, China Securities 800 is 2.17 times less risky than Road Environment. It trades about -0.11 of its potential returns per unit of risk. Road Environment Technology 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 | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Road Environment Technology
Performance |
| Timeline |
China Securities and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Road Environment Technology
Pair trading matchups for Road Environment
Pair Trading with China Securities and Road Environment
The main advantage of trading using opposite China Securities and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Road Environment vs. Will Semiconductor Co | Road Environment vs. Cicc Fund Management | Road Environment vs. Shenzhen Glory Medical | Road Environment vs. JCHX Mining Management |
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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