Correlation Between China State and Silkroad Visual
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By analyzing existing cross correlation between China State Construction and Silkroad Visual Technology, you can compare the effects of market volatilities on China State and Silkroad Visual 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 State with a short position of Silkroad Visual. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Silkroad Visual.
Diversification Opportunities for China State and Silkroad Visual
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Silkroad is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Silkroad Visual Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkroad Visual Tech and China State 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 State Construction are associated (or correlated) with Silkroad Visual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkroad Visual Tech has no effect on the direction of China State i.e., China State and Silkroad Visual go up and down completely randomly.
Pair Corralation between China State and Silkroad Visual
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Silkroad Visual. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.8 times less risky than Silkroad Visual. The stock trades about -0.01 of its potential returns per unit of risk. The Silkroad Visual Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,938 in Silkroad Visual Technology on September 1, 2024 and sell it today you would earn a total of 184.00 from holding Silkroad Visual Technology or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Silkroad Visual Technology
Performance |
| Timeline |
| China State Construction |
| Silkroad Visual Tech |
China State and Silkroad Visual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Silkroad Visual
The main advantage of trading using opposite China State and Silkroad Visual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Silkroad Visual 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 Silkroad Visual will offset losses from the drop in Silkroad Visual's long position.| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
| Silkroad Visual vs. Cultural Investment Holdings | Silkroad Visual vs. Gome Telecom Equipment | Silkroad Visual vs. Bus Online Co | Silkroad Visual vs. Holitech 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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