Correlation Between China Securities and Shareate Tools
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By analyzing existing cross correlation between China Securities 800 and Shareate Tools, you can compare the effects of market volatilities on China Securities and Shareate Tools 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 Shareate Tools. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shareate Tools.
Diversification Opportunities for China Securities and Shareate Tools
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shareate is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shareate Tools in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shareate Tools 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 Shareate Tools. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shareate Tools has no effect on the direction of China Securities i.e., China Securities and Shareate Tools go up and down completely randomly.
Pair Corralation between China Securities and Shareate Tools
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Shareate Tools. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.81 times less risky than Shareate Tools. The index trades about -0.14 of its potential returns per unit of risk. The Shareate Tools is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,751 in Shareate Tools on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Shareate Tools or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Shareate Tools
Performance |
| Timeline |
China Securities and Shareate Tools Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shareate Tools
Pair trading matchups for Shareate Tools
Pair Trading with China Securities and Shareate Tools
The main advantage of trading using opposite China Securities and Shareate Tools positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shareate Tools 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 Shareate Tools will offset losses from the drop in Shareate Tools' 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 |
| Shareate Tools vs. JCHX Mining Management | Shareate Tools vs. Sanbo Hospital Management | Shareate Tools vs. China Asset Management | Shareate Tools vs. Railway Signal Communication |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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