Correlation Between China Southern and China Southern
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By analyzing existing cross correlation between China Southern SSE and China Southern CSI, you can compare the effects of market volatilities on China Southern and China Southern 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 Southern with a short position of China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Southern and China Southern.
Diversification Opportunities for China Southern and China Southern
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and China is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Southern SSE and China Southern CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern CSI and China Southern 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 Southern SSE are associated (or correlated) with China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern CSI has no effect on the direction of China Southern i.e., China Southern and China Southern go up and down completely randomly.
Pair Corralation between China Southern and China Southern
Assuming the 90 days trading horizon China Southern SSE is expected to under-perform the China Southern. In addition to that, China Southern is 1.15 times more volatile than China Southern CSI. It trades about -0.03 of its total potential returns per unit of risk. China Southern CSI is currently generating about 0.05 per unit of volatility. If you would invest 87.00 in China Southern CSI on September 13, 2024 and sell it today you would earn a total of 1.00 from holding China Southern CSI or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Southern SSE vs. China Southern CSI
Performance |
| Timeline |
| China Southern SSE |
| China Southern CSI |
China Southern and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Southern and China Southern
The main advantage of trading using opposite China Southern and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Southern position performs unexpectedly, China Southern 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 Southern will offset losses from the drop in China Southern's long position.| China Southern vs. China Southern CSI | China Southern vs. China Universal CS | China Southern vs. China Southern CSI | China Southern vs. China Universal CSI |
| China Southern vs. Shenzhen MTC Co | China Southern vs. Ming Yang Smart | China Southern vs. 159681 | China Southern vs. 159005 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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