Correlation Between China State and 360 Security
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By analyzing existing cross correlation between China State Construction and 360 Security Technology, you can compare the effects of market volatilities on China State and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and 360 Security.
Diversification Opportunities for China State and 360 Security
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and 360 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of China State i.e., China State and 360 Security go up and down completely randomly.
Pair Corralation between China State and 360 Security
Assuming the 90 days trading horizon China State Construction is expected to under-perform the 360 Security. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 3.26 times less risky than 360 Security. The stock trades about -0.01 of its potential returns per unit of risk. The 360 Security Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 967.00 in 360 Security Technology on September 1, 2024 and sell it today you would earn a total of 373.00 from holding 360 Security Technology or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. 360 Security Technology
Performance |
| Timeline |
| China State Construction |
| 360 Security Technology |
China State and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and 360 Security
The main advantage of trading using opposite China State and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security'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 |
| 360 Security vs. Shenzhen AV Display Co | 360 Security vs. Zhejiang Zhengguang Industrial | 360 Security vs. Huafa Industrial Co | 360 Security vs. Bosera CMSK Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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