Correlation Between China Securities and CSG Holding
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By analyzing existing cross correlation between China Securities 800 and CSG Holding Co, you can compare the effects of market volatilities on China Securities and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and CSG Holding.
Diversification Opportunities for China Securities and CSG Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and CSG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of China Securities i.e., China Securities and CSG Holding go up and down completely randomly.
Pair Corralation between China Securities and CSG Holding
Assuming the 90 days trading horizon China Securities 800 is expected to generate 1.37 times more return on investment than CSG Holding. However, China Securities is 1.37 times more volatile than CSG Holding Co. It trades about 0.13 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.01 per unit of risk. If you would invest 361,256 in China Securities 800 on September 25, 2024 and sell it today you would earn a total of 63,015 from holding China Securities 800 or generate 17.44% 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. CSG Holding Co
Performance |
Timeline |
China Securities and CSG Holding Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
CSG Holding Co
Pair trading matchups for CSG Holding
Pair Trading with China Securities and CSG Holding
The main advantage of trading using opposite China Securities and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.China Securities vs. Liuzhou Chemical Industry | China Securities vs. Guangzhou Jointas Chemical | China Securities vs. Shenzhen Noposion Agrochemicals | China Securities vs. Liaoning Dingjide Petrochemical |
CSG Holding vs. Zijin Mining Group | CSG Holding vs. Wanhua Chemical Group | CSG Holding vs. Baoshan Iron Steel | CSG Holding vs. Shandong Gold Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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