Correlation Between China International and China Fortune
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By analyzing existing cross correlation between China International Capital and China Fortune Land, you can compare the effects of market volatilities on China International and China Fortune 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 International with a short position of China Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and China Fortune.
Diversification Opportunities for China International and China Fortune
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land and China International 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 International Capital are associated (or correlated) with China Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of China International i.e., China International and China Fortune go up and down completely randomly.
Pair Corralation between China International and China Fortune
Assuming the 90 days trading horizon China International Capital is expected to generate 0.39 times more return on investment than China Fortune. However, China International Capital is 2.55 times less risky than China Fortune. It trades about -0.15 of its potential returns per unit of risk. China Fortune Land is currently generating about -0.26 per unit of risk. If you would invest 3,247 in China International Capital on November 2, 2024 and sell it today you would lose (129.00) from holding China International Capital or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. China Fortune Land
Performance |
| Timeline |
| China International |
| China Fortune Land |
China International and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and China Fortune
The main advantage of trading using opposite China International and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, China Fortune 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 China Fortune will offset losses from the drop in China Fortune's long position.| China International vs. Duzhe Publishing Media | China International vs. Lecron Energy Saving | China International vs. Ciwen Media Co | China International vs. Unisplendour Corp |
| China Fortune vs. Shanghai Ziyan Foods | China Fortune vs. Youyou Foods Co | China Fortune vs. Chengdu Spaceon Electronics | China Fortune vs. Ligao Foods CoLtd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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