Correlation Between China Securities and IRay Technology
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By analyzing existing cross correlation between China Securities 800 and iRay Technology Co, you can compare the effects of market volatilities on China Securities and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and IRay Technology.
Diversification Opportunities for China Securities and IRay Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and IRay is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of China Securities i.e., China Securities and IRay Technology go up and down completely randomly.
Pair Corralation between China Securities and IRay Technology
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.43 times more return on investment than IRay Technology. However, China Securities 800 is 2.34 times less risky than IRay Technology. It trades about -0.1 of its potential returns per unit of risk. iRay Technology Co is currently generating about -0.11 per unit of risk. If you would invest 427,943 in China Securities 800 on August 28, 2024 and sell it today you would lose (13,470) from holding China Securities 800 or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. iRay Technology Co
Performance |
| Timeline |
China Securities and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
iRay Technology Co
Pair trading matchups for IRay Technology
Pair Trading with China Securities and IRay Technology
The main advantage of trading using opposite China Securities and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology'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 |
| IRay Technology vs. Guangzhou KingTeller Technology | IRay Technology vs. Maxvision Technology Corp | IRay Technology vs. Linewell Software Co | IRay Technology vs. Bangyan Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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