Correlation Between China Securities and SuZhou ChunXing
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By analyzing existing cross correlation between China Securities 800 and SuZhou ChunXing Precision, you can compare the effects of market volatilities on China Securities and SuZhou ChunXing 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 Securities with a short position of SuZhou ChunXing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and SuZhou ChunXing.
Diversification Opportunities for China Securities and SuZhou ChunXing
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and SuZhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and SuZhou ChunXing Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuZhou ChunXing Precision and China Securities 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 Securities 800 are associated (or correlated) with SuZhou ChunXing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuZhou ChunXing Precision has no effect on the direction of China Securities i.e., China Securities and SuZhou ChunXing go up and down completely randomly.
Pair Corralation between China Securities and SuZhou ChunXing
Assuming the 90 days trading horizon China Securities is expected to generate 3.4 times less return on investment than SuZhou ChunXing. But when comparing it to its historical volatility, China Securities 800 is 2.58 times less risky than SuZhou ChunXing. It trades about 0.11 of its potential returns per unit of risk. SuZhou ChunXing Precision is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 319.00 in SuZhou ChunXing Precision on September 26, 2024 and sell it today you would earn a total of 157.00 from holding SuZhou ChunXing Precision or generate 49.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Securities 800 vs. SuZhou ChunXing Precision
Performance |
Timeline |
China Securities and SuZhou ChunXing Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
SuZhou ChunXing Precision
Pair trading matchups for SuZhou ChunXing
Pair Trading with China Securities and SuZhou ChunXing
The main advantage of trading using opposite China Securities and SuZhou ChunXing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, SuZhou ChunXing 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 SuZhou ChunXing will offset losses from the drop in SuZhou ChunXing's long position.China Securities vs. Caihong Display Devices | China Securities vs. Keda Clean Energy | China Securities vs. Easyhome New Retail | China Securities vs. Shanghai Yaoji Playing |
SuZhou ChunXing vs. Wuhan Hvsen Biotechnology | SuZhou ChunXing vs. Guangzhou Dongfang Hotel | SuZhou ChunXing vs. Spring Airlines Co | SuZhou ChunXing vs. Super Dragon Engineering Plastics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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