Correlation Between China Securities and Zhejiang Orient
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By analyzing existing cross correlation between China Securities 800 and Zhejiang Orient Gene, you can compare the effects of market volatilities on China Securities and Zhejiang Orient 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 Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zhejiang Orient.
Diversification Opportunities for China Securities and Zhejiang Orient
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene 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 Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of China Securities i.e., China Securities and Zhejiang Orient go up and down completely randomly.
Pair Corralation between China Securities and Zhejiang Orient
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.45 times more return on investment than Zhejiang Orient. However, China Securities 800 is 2.2 times less risky than Zhejiang Orient. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about -0.07 per unit of risk. If you would invest 430,950 in China Securities 800 on September 3, 2024 and sell it today you would lose (7,414) from holding China Securities 800 or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Zhejiang Orient Gene
Performance |
| Timeline |
China Securities and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zhejiang Orient Gene
Pair trading matchups for Zhejiang Orient
Pair Trading with China Securities and Zhejiang Orient
The main advantage of trading using opposite China Securities and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Zhejiang Orient 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 Zhejiang Orient will offset losses from the drop in Zhejiang Orient's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Zhejiang Orient vs. Gem Year Industrial Co | Zhejiang Orient vs. Bomesc Offshore Engineering | Zhejiang Orient vs. Tibet Huayu Mining | Zhejiang Orient vs. Xinjiang Baodi 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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