Correlation Between China Asset and China State
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By analyzing existing cross correlation between China Asset Management and China State Construction, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and China State.
Diversification Opportunities for China Asset and China State
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and China is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 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 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 China Asset i.e., China Asset and China State go up and down completely randomly.
Pair Corralation between China Asset and China State
Assuming the 90 days trading horizon China Asset Management is expected to generate 1.14 times more return on investment than China State. However, China Asset is 1.14 times more volatile than China State Construction. It trades about 0.36 of its potential returns per unit of risk. China State Construction is currently generating about -0.1 per unit of risk. If you would invest 370.00 in China Asset Management on November 6, 2024 and sell it today you would earn a total of 26.00 from holding China Asset Management or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. China State Construction
Performance |
| Timeline |
| China Asset Management |
| China State Construction |
China Asset and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and China State
The main advantage of trading using opposite China Asset and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Tinavi Medical Technologies | China Asset vs. Double Medical Technology | China Asset vs. Cicc Fund Management | China Asset vs. Eyebright Medical Technology |
| China State vs. Olympic Circuit Technology | China State vs. Maxvision Technology Corp | China State vs. Guangdong TianYiMa Information | China State vs. Montage Technology Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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