Correlation Between China Securities and Shanghai Putailai
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Shanghai Putailai New, you can compare the effects of market volatilities on China Securities and Shanghai Putailai 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 Shanghai Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shanghai Putailai.
Diversification Opportunities for China Securities and Shanghai Putailai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New 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 Shanghai Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of China Securities i.e., China Securities and Shanghai Putailai go up and down completely randomly.
Pair Corralation between China Securities and Shanghai Putailai
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.41 times more return on investment than Shanghai Putailai. However, China Securities 800 is 2.46 times less risky than Shanghai Putailai. It trades about 0.13 of its potential returns per unit of risk. Shanghai Putailai New is currently generating about -0.37 per unit of risk. If you would invest 415,867 in China Securities 800 on September 24, 2024 and sell it today you would earn a total of 9,787 from holding China Securities 800 or generate 2.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
China Securities 800 vs. Shanghai Putailai New
Performance |
Timeline |
China Securities and Shanghai Putailai Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Shanghai Putailai New
Pair trading matchups for Shanghai Putailai
Pair Trading with China Securities and Shanghai Putailai
The main advantage of trading using opposite China Securities and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shanghai Putailai 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 Shanghai Putailai will offset losses from the drop in Shanghai Putailai's long position.China Securities vs. Sinomach General Machinery | China Securities vs. Shenzhen Centralcon Investment | China Securities vs. Guangdong Jinming Machinery | China Securities vs. Jointo Energy Investment |
Shanghai Putailai vs. Jonjee Hi tech Industrial | Shanghai Putailai vs. Guangzhou Haige Communications | Shanghai Putailai vs. GigaDevice SemiconductorBeiji | Shanghai Putailai vs. Fujian Newland Computer |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |