Correlation Between China International and Chinese Universe
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By analyzing existing cross correlation between China International Capital and Chinese Universe Publishing, you can compare the effects of market volatilities on China International and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Chinese Universe.
Diversification Opportunities for China International and Chinese Universe
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Chinese is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of China International i.e., China International and Chinese Universe go up and down completely randomly.
Pair Corralation between China International and Chinese Universe
Assuming the 90 days trading horizon China International Capital is expected to generate 1.08 times more return on investment than Chinese Universe. However, China International is 1.08 times more volatile than Chinese Universe Publishing. It trades about -0.02 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.22 per unit of risk. If you would invest 3,580 in China International Capital on August 30, 2024 and sell it today you would lose (78.00) from holding China International Capital or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Chinese Universe Publishing
Performance |
| Timeline |
| China International |
| Chinese Universe Pub |
China International and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Chinese Universe
The main advantage of trading using opposite China International and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| China International vs. Chengdu Xingrong Investment | China International vs. Maccura Biotechnology Co | China International vs. Vanfund Urban Investment | China International vs. Xiandai Investment Co |
| Chinese Universe vs. Xiamen Jihong Package | Chinese Universe vs. Eastroc Beverage Group | Chinese Universe vs. Xinjiang Tianrun Dairy | Chinese Universe 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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