Correlation Between 159681 and China Marine
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By analyzing existing cross correlation between 159681 and China Marine Information, you can compare the effects of market volatilities on 159681 and China Marine 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 Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and China Marine.
Diversification Opportunities for 159681 and China Marine
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of 159681 i.e., 159681 and China Marine go up and down completely randomly.
Pair Corralation between 159681 and China Marine
Assuming the 90 days trading horizon 159681 is expected to under-perform the China Marine. In addition to that, 159681 is 1.02 times more volatile than China Marine Information. It trades about -0.11 of its total potential returns per unit of risk. China Marine Information is currently generating about 0.02 per unit of volatility. If you would invest 2,667 in China Marine Information on September 3, 2024 and sell it today you would earn a total of 22.00 from holding China Marine Information or generate 0.82% 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 Marine Information
Performance |
| Timeline |
| 159681 |
| China Marine Information |
159681 and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and China Marine
The main advantage of trading using opposite 159681 and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, China Marine 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 Marine will offset losses from the drop in China Marine's long position.The idea behind 159681 and China Marine Information 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 Marine vs. Pengxin International Mining | China Marine vs. Zhejiang Yayi Metal | China Marine vs. Anhui Transport Consulting | China Marine vs. Western Metal Materials |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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