Correlation Between 159681 and China Baoan
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By analyzing existing cross correlation between 159681 and China Baoan Group, you can compare the effects of market volatilities on 159681 and China Baoan 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 159681 with a short position of China Baoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and China Baoan.
Diversification Opportunities for 159681 and China Baoan
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and China Baoan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Baoan Group and 159681 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 159681 are associated (or correlated) with China Baoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Baoan Group has no effect on the direction of 159681 i.e., 159681 and China Baoan go up and down completely randomly.
Pair Corralation between 159681 and China Baoan
Assuming the 90 days trading horizon 159681 is expected to generate 1.21 times less return on investment than China Baoan. But when comparing it to its historical volatility, 159681 is 1.08 times less risky than China Baoan. It trades about 0.04 of its potential returns per unit of risk. China Baoan Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 938.00 in China Baoan Group on September 26, 2024 and sell it today you would earn a total of 12.00 from holding China Baoan Group or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. China Baoan Group
Performance |
| Timeline |
| 159681 |
| China Baoan Group |
159681 and China Baoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and China Baoan
The main advantage of trading using opposite 159681 and China Baoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, China Baoan 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 Baoan will offset losses from the drop in China Baoan's long position.The idea behind 159681 and China Baoan Group 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 Baoan vs. Ming Yang Smart | China Baoan vs. 159681 | China Baoan vs. 159005 | China Baoan vs. Loctek Ergonomic Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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