Correlation Between Cinda Securities and Shanghai Bailian
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By analyzing existing cross correlation between Cinda Securities Co and Shanghai Bailian Group, you can compare the effects of market volatilities on Cinda Securities and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Shanghai Bailian.
Diversification Opportunities for Cinda Securities and Shanghai Bailian
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Cinda Securities i.e., Cinda Securities and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Cinda Securities and Shanghai Bailian
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.57 times more return on investment than Shanghai Bailian. However, Cinda Securities is 1.57 times more volatile than Shanghai Bailian Group. It trades about 0.0 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.0 per unit of risk. If you would invest 1,766 in Cinda Securities Co on November 19, 2024 and sell it today you would lose (262.00) from holding Cinda Securities Co or give up 14.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Shanghai Bailian Group
Performance |
| Timeline |
| Cinda Securities |
| Shanghai Bailian |
Cinda Securities and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Shanghai Bailian
The main advantage of trading using opposite Cinda Securities and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Cinda Securities vs. Allwin Telecommunication Co | Cinda Securities vs. Yindu Kitchen Equipment | Cinda Securities vs. Songz Automobile Air | Cinda Securities vs. Nanjing Putian Telecommunications |
| Shanghai Bailian vs. HengFeng Information Technology | Shanghai Bailian vs. YLZ Information Tech | Shanghai Bailian vs. Beijing Sanyuan Foods | Shanghai Bailian vs. Anhui Gujing Distillery |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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