Correlation Between National Silicon and China State
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By analyzing existing cross correlation between National Silicon Industry and China State Construction, you can compare the effects of market volatilities on National Silicon and China State 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 National Silicon with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Silicon and China State.
Diversification Opportunities for National Silicon and China State
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding National Silicon Industry and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and National Silicon 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 National Silicon Industry are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of National Silicon i.e., National Silicon and China State go up and down completely randomly.
Pair Corralation between National Silicon and China State
Assuming the 90 days trading horizon National Silicon Industry is expected to generate 1.82 times more return on investment than China State. However, National Silicon is 1.82 times more volatile than China State Construction. It trades about 0.11 of its potential returns per unit of risk. China State Construction is currently generating about 0.04 per unit of risk. If you would invest 1,367 in National Silicon Industry on September 1, 2024 and sell it today you would earn a total of 790.00 from holding National Silicon Industry or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Silicon Industry vs. China State Construction
Performance |
| Timeline |
| National Silicon Industry |
| China State Construction |
National Silicon and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Silicon and China State
The main advantage of trading using opposite National Silicon and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Silicon position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| National Silicon vs. Industrial and Commercial | National Silicon vs. Kweichow Moutai Co | National Silicon vs. Agricultural Bank of | National Silicon vs. China Mobile Limited |
| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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