Correlation Between China Securities and Shanghai Rendu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Shanghai Rendu Biotechnology, you can compare the effects of market volatilities on China Securities and Shanghai Rendu 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 Shanghai Rendu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Rendu.
Diversification Opportunities for China Securities and Shanghai Rendu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Rendu Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rendu Biote 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 Shanghai Rendu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rendu Biote has no effect on the direction of China Securities i.e., China Securities and Shanghai Rendu go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Rendu
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Shanghai Rendu. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.97 times less risky than Shanghai Rendu. The index trades about -0.14 of its potential returns per unit of risk. The Shanghai Rendu Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,095 in Shanghai Rendu Biotechnology on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Shanghai Rendu Biotechnology or generate 2.56% 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. Shanghai Rendu Biotechnology
Performance |
| Timeline |
China Securities and Shanghai Rendu Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Rendu Biotechnology
Pair trading matchups for Shanghai Rendu
Pair Trading with China Securities and Shanghai Rendu
The main advantage of trading using opposite China Securities and Shanghai Rendu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Rendu 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 Shanghai Rendu will offset losses from the drop in Shanghai Rendu's long position.| China Securities vs. Ningxia Building Materials | China Securities vs. Western Metal Materials | China Securities vs. Ningbo Bohui Chemical | China Securities vs. Hengerda New Materials |
| Shanghai Rendu vs. Cultural Investment Holdings | Shanghai Rendu vs. Gome Telecom Equipment | Shanghai Rendu vs. Holitech Technology Co | Shanghai Rendu vs. Zotye Automobile Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |