Correlation Between 159681 and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and China State Construction, you can compare the effects of market volatilities on 159681 and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and China State.
Diversification Opportunities for 159681 and China State
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of 159681 i.e., 159681 and China State go up and down completely randomly.
Pair Corralation between 159681 and China State
Assuming the 90 days trading horizon 159681 is expected to generate 1.4 times less return on investment than China State. In addition to that, 159681 is 1.26 times more volatile than China State Construction. It trades about 0.01 of its total potential returns per unit of risk. China State Construction is currently generating about 0.01 per unit of volatility. If you would invest 569.00 in China State Construction on August 30, 2024 and sell it today you would earn a total of 27.00 from holding China State Construction or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.32% |
| Values | Daily Returns |
159681 vs. China State Construction
Performance |
| Timeline |
| 159681 |
| China State Construction |
159681 and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and China State
The main advantage of trading using opposite 159681 and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.The idea behind 159681 and China State Construction 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 State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |