Correlation Between 159005 and China Resources
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By analyzing existing cross correlation between 159005 and China Resources Boya, you can compare the effects of market volatilities on 159005 and China Resources 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 159005 with a short position of China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and China Resources.
Diversification Opportunities for 159005 and China Resources
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 159005 and China is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya and 159005 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 159005 are associated (or correlated) with China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of 159005 i.e., 159005 and China Resources go up and down completely randomly.
Pair Corralation between 159005 and China Resources
Assuming the 90 days trading horizon 159005 is expected to generate 0.03 times more return on investment than China Resources. However, 159005 is 31.01 times less risky than China Resources. It trades about 0.22 of its potential returns per unit of risk. China Resources Boya is currently generating about -0.38 per unit of risk. If you would invest 9,986 in 159005 on October 25, 2024 and sell it today you would earn a total of 14.00 from holding 159005 or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. China Resources Boya
Performance |
| Timeline |
| 159005 |
| China Resources Boya |
159005 and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and China Resources
The main advantage of trading using opposite 159005 and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.The idea behind 159005 and China Resources Boya pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| China Resources vs. Shenzhen Centralcon Investment | China Resources vs. Luyin Investment Group | China Resources vs. Sportsoul Co Ltd | China Resources vs. Kunwu Jiuding Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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