Correlation Between Cinda Securities and China Merchants
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By analyzing existing cross correlation between Cinda Securities Co and China Merchants Shekou, you can compare the effects of market volatilities on Cinda Securities and China Merchants 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 Cinda Securities with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and China Merchants.
Diversification Opportunities for Cinda Securities and China Merchants
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cinda and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Cinda Securities i.e., Cinda Securities and China Merchants go up and down completely randomly.
Pair Corralation between Cinda Securities and China Merchants
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.26 times more return on investment than China Merchants. However, Cinda Securities is 1.26 times more volatile than China Merchants Shekou. It trades about 0.04 of its potential returns per unit of risk. China Merchants Shekou is currently generating about 0.0 per unit of risk. If you would invest 1,179 in Cinda Securities Co on September 16, 2024 and sell it today you would earn a total of 394.00 from holding Cinda Securities Co or generate 33.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.61% |
| Values | Daily Returns |
Cinda Securities Co vs. China Merchants Shekou
Performance |
| Timeline |
| Cinda Securities |
| China Merchants Shekou |
Cinda Securities and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and China Merchants
The main advantage of trading using opposite Cinda Securities and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, China Merchants 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 Merchants will offset losses from the drop in China Merchants' long position.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China State Construction | Cinda Securities vs. China Railway Group |
| China Merchants vs. China Life Insurance | China Merchants vs. Cinda Securities Co | China Merchants vs. Piotech Inc A | China Merchants vs. Dongxing Sec 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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