Correlation Between China State and Circuit Fabology
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By analyzing existing cross correlation between China State Construction and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on China State and Circuit Fabology 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 Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Circuit Fabology.
Diversification Opportunities for China State and Circuit Fabology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Circuit is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic 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 Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of China State i.e., China State and Circuit Fabology go up and down completely randomly.
Pair Corralation between China State and Circuit Fabology
Assuming the 90 days trading horizon China State Construction is expected to generate 0.55 times more return on investment than Circuit Fabology. However, China State Construction is 1.81 times less risky than Circuit Fabology. It trades about 0.04 of its potential returns per unit of risk. Circuit Fabology Microelectronics is currently generating about 0.0 per unit of risk. If you would invest 535.00 in China State Construction on August 27, 2024 and sell it today you would earn a total of 60.00 from holding China State Construction or generate 11.21% 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. Circuit Fabology Microelectron
Performance |
| Timeline |
| China State Construction |
| Circuit Fabology Mic |
China State and Circuit Fabology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Circuit Fabology
The main advantage of trading using opposite China State and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology's long position.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| Circuit Fabology vs. Nanjing Putian Telecommunications | Circuit Fabology vs. Shenzhen Hifuture Electric | Circuit Fabology vs. Shenyang Huitian Thermal | Circuit Fabology vs. Jiangsu Xinning Modern |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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