Correlation Between China Securities and Guangdong Skychem
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By analyzing existing cross correlation between China Securities 800 and Guangdong Skychem Technology, you can compare the effects of market volatilities on China Securities and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Guangdong Skychem.
Diversification Opportunities for China Securities and Guangdong Skychem
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Guangdong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of China Securities i.e., China Securities and Guangdong Skychem go up and down completely randomly.
Pair Corralation between China Securities and Guangdong Skychem
Assuming the 90 days trading horizon China Securities is expected to generate 1.25 times less return on investment than Guangdong Skychem. But when comparing it to its historical volatility, China Securities 800 is 3.36 times less risky than Guangdong Skychem. It trades about 0.1 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,819 in Guangdong Skychem Technology on September 28, 2024 and sell it today you would earn a total of 181.00 from holding Guangdong Skychem Technology or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Guangdong Skychem Technology
Performance |
| Timeline |
China Securities and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Guangdong Skychem Technology
Pair trading matchups for Guangdong Skychem
Pair Trading with China Securities and Guangdong Skychem
The main advantage of trading using opposite China Securities and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| China Securities vs. Unigroup Guoxin Microelectronics | China Securities vs. Goke Microelectronics Co | China Securities vs. Dongguan Tarry Electronics | China Securities vs. Kunshan Guoli Electronic |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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