Correlation Between China Securities and BrightGene Bio
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By analyzing existing cross correlation between China Securities 800 and BrightGene Bio Medical, you can compare the effects of market volatilities on China Securities and BrightGene Bio 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 BrightGene Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and BrightGene Bio.
Diversification Opportunities for China Securities and BrightGene Bio
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and BrightGene is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and BrightGene Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightGene Bio Medical 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 BrightGene Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightGene Bio Medical has no effect on the direction of China Securities i.e., China Securities and BrightGene Bio go up and down completely randomly.
Pair Corralation between China Securities and BrightGene Bio
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the BrightGene Bio. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.75 times less risky than BrightGene Bio. The index trades about -0.2 of its potential returns per unit of risk. The BrightGene Bio Medical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,099 in BrightGene Bio Medical on October 30, 2024 and sell it today you would lose (7.00) from holding BrightGene Bio Medical or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. BrightGene Bio Medical
Performance |
| Timeline |
China Securities and BrightGene Bio Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
BrightGene Bio Medical
Pair trading matchups for BrightGene Bio
Pair Trading with China Securities and BrightGene Bio
The main advantage of trading using opposite China Securities and BrightGene Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, BrightGene Bio 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 BrightGene Bio will offset losses from the drop in BrightGene Bio's long position.| China Securities vs. Sinocelltech Group | China Securities vs. Jinhe Biotechnology Co | China Securities vs. Olympic Circuit Technology | China Securities vs. Eyebright Medical Technology |
| BrightGene Bio vs. Guangzhou Dongfang Hotel | BrightGene Bio vs. Tianshui Huatian Technology | BrightGene Bio vs. Jiujiang Shanshui Technology | BrightGene Bio vs. Jiangsu Financial Leasing |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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