Correlation Between 159681 and China Resources
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By analyzing existing cross correlation between 159681 and China Resources Boya, you can compare the effects of market volatilities on 159681 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 159681 with a short position of China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and China Resources.
Diversification Opportunities for 159681 and China Resources
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 159681 and China is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding 159681 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 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 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 159681 i.e., 159681 and China Resources go up and down completely randomly.
Pair Corralation between 159681 and China Resources
Assuming the 90 days trading horizon 159681 is expected to under-perform the China Resources. In addition to that, 159681 is 1.31 times more volatile than China Resources Boya. It trades about -0.38 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.26 per unit of volatility. If you would invest 3,096 in China Resources Boya on October 10, 2024 and sell it today you would lose (186.00) from holding China Resources Boya or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. China Resources Boya
Performance |
| Timeline |
| 159681 |
| China Resources Boya |
159681 and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and China Resources
The main advantage of trading using opposite 159681 and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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 159681 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. Ming Yang Smart | China Resources vs. 159681 | China Resources vs. 159005 | China Resources 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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