Correlation Between China State and Poly Real
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By analyzing existing cross correlation between China State Construction and Poly Real Estate, you can compare the effects of market volatilities on China State and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Poly Real.
Diversification Opportunities for China State and Poly Real
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Poly is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of China State i.e., China State and Poly Real go up and down completely randomly.
Pair Corralation between China State and Poly Real
Assuming the 90 days trading horizon China State Construction is expected to generate 1.09 times more return on investment than Poly Real. However, China State is 1.09 times more volatile than Poly Real Estate. It trades about -0.08 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.27 per unit of risk. If you would invest 614.00 in China State Construction on August 28, 2024 and sell it today you would lose (25.00) from holding China State Construction or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Poly Real Estate
Performance |
| Timeline |
| China State Construction |
| Poly Real Estate |
China State and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Poly Real
The main advantage of trading using opposite China State and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| China State vs. Leaguer Shenzhen MicroElectronics | China State vs. Shanghai CEO Environmental | China State vs. Bomin Electronics Co | China State vs. Zhejiang Kingland Pipeline |
| Poly Real vs. Hangzhou Gaoxin Rubber | Poly Real vs. Humanwell Healthcare Group | Poly Real vs. Renxin New Material | Poly Real vs. Suzhou Xingye Material |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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