Correlation Between China Securities and Niutech Environment
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By analyzing existing cross correlation between China Securities 800 and Niutech Environment Technology, you can compare the effects of market volatilities on China Securities and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Niutech Environment.
Diversification Opportunities for China Securities and Niutech Environment
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Niutech is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of China Securities i.e., China Securities and Niutech Environment go up and down completely randomly.
Pair Corralation between China Securities and Niutech Environment
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.48 times more return on investment than Niutech Environment. However, China Securities 800 is 2.09 times less risky than Niutech Environment. It trades about 0.04 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.01 per unit of risk. If you would invest 386,016 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 37,520 from holding China Securities 800 or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
China Securities 800 vs. Niutech Environment Technology
Performance |
| Timeline |
China Securities and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Niutech Environment Technology
Pair trading matchups for Niutech Environment
Pair Trading with China Securities and Niutech Environment
The main advantage of trading using opposite China Securities and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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