Correlation Between China Asset and CSPC Innovation
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Asset Management and CSPC Innovation Pharmaceutical, you can compare the effects of market volatilities on China Asset and CSPC Innovation 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 China Asset with a short position of CSPC Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and CSPC Innovation.
Diversification Opportunities for China Asset and CSPC Innovation
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and CSPC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and CSPC Innovation Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSPC Innovation Phar and China Asset 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 China Asset Management are associated (or correlated) with CSPC Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSPC Innovation Phar has no effect on the direction of China Asset i.e., China Asset and CSPC Innovation go up and down completely randomly.
Pair Corralation between China Asset and CSPC Innovation
Assuming the 90 days trading horizon China Asset is expected to generate 4.24 times less return on investment than CSPC Innovation. But when comparing it to its historical volatility, China Asset Management is 3.58 times less risky than CSPC Innovation. It trades about 0.13 of its potential returns per unit of risk. CSPC Innovation Pharmaceutical is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,610 in CSPC Innovation Pharmaceutical on September 3, 2024 and sell it today you would earn a total of 241.00 from holding CSPC Innovation Pharmaceutical or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. CSPC Innovation Pharmaceutical
Performance |
| Timeline |
| China Asset Management |
| CSPC Innovation Phar |
China Asset and CSPC Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and CSPC Innovation
The main advantage of trading using opposite China Asset and CSPC Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, CSPC Innovation 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 CSPC Innovation will offset losses from the drop in CSPC Innovation's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| CSPC Innovation vs. Huitong Construction Group | CSPC Innovation vs. China Asset Management | CSPC Innovation vs. Lutian Machinery Co | CSPC Innovation vs. Cicc Fund Management |
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
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |