Correlation Between China Securities and Shanghai Jin
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By analyzing existing cross correlation between China Securities 800 and Shanghai Jin Jiang, you can compare the effects of market volatilities on China Securities and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Jin.
Diversification Opportunities for China Securities and Shanghai Jin
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shanghai is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of China Securities i.e., China Securities and Shanghai Jin go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Jin
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Shanghai Jin. In addition to that, China Securities is 1.23 times more volatile than Shanghai Jin Jiang. It trades about -0.33 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.36 per unit of volatility. If you would invest 156.00 in Shanghai Jin Jiang on October 14, 2024 and sell it today you would lose (9.00) from holding Shanghai Jin Jiang or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shanghai Jin Jiang
Performance |
| Timeline |
China Securities and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Jin Jiang
Pair trading matchups for Shanghai Jin
Pair Trading with China Securities and Shanghai Jin
The main advantage of trading using opposite China Securities and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.| China Securities vs. Sunwave Communications Co | China Securities vs. Dongfeng Automobile Co | China Securities vs. Nanjing Vishee Medical | China Securities vs. Haima Automobile Group |
| Shanghai Jin vs. State Grid InformationCommunication | Shanghai Jin vs. Songz Automobile Air | Shanghai Jin vs. Guangzhou Automobile Group | Shanghai Jin vs. CIMC Vehicles 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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