Correlation Between China Securities and Shanghai Huayi
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By analyzing existing cross correlation between China Securities 800 and Shanghai Huayi Group, you can compare the effects of market volatilities on China Securities and Shanghai Huayi 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 Shanghai Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Huayi.
Diversification Opportunities for China Securities and Shanghai Huayi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shanghai is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Shanghai Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of China Securities i.e., China Securities and Shanghai Huayi go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Huayi
Assuming the 90 days trading horizon China Securities is expected to generate 20.45 times less return on investment than Shanghai Huayi. But when comparing it to its historical volatility, China Securities 800 is 1.44 times less risky than Shanghai Huayi. It trades about 0.0 of its potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 54.00 in Shanghai Huayi Group on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Shanghai Huayi Group or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shanghai Huayi Group
Performance |
| Timeline |
China Securities and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Huayi Group
Pair trading matchups for Shanghai Huayi
Pair Trading with China Securities and Shanghai Huayi
The main advantage of trading using opposite China Securities and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Huayi 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 Shanghai Huayi will offset losses from the drop in Shanghai Huayi'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 |
| Shanghai Huayi vs. Rising Nonferrous Metals | Shanghai Huayi vs. Shanghai Yanpu Metal | Shanghai Huayi vs. Jiangsu GDK Biotechnology | Shanghai Huayi vs. Wuhan Hvsen Biotechnology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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