Correlation Between China Securities and Coreshares Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Coreshares Index Tracker, you can compare the effects of market volatilities on China Securities and Coreshares Index 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 Coreshares Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Coreshares Index.
Diversification Opportunities for China Securities and Coreshares Index
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Coreshares is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Coreshares Index Tracker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coreshares Index Tracker 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 Coreshares Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coreshares Index Tracker has no effect on the direction of China Securities i.e., China Securities and Coreshares Index go up and down completely randomly.
Pair Corralation between China Securities and Coreshares Index
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.97 times more return on investment than Coreshares Index. However, China Securities 800 is 1.03 times less risky than Coreshares Index. It trades about 0.04 of its potential returns per unit of risk. Coreshares Index Tracker is currently generating about -0.01 per unit of risk. If you would invest 387,782 in China Securities 800 on February 2, 2024 and sell it today you would earn a total of 3,019 from holding China Securities 800 or generate 0.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 90.91% |
Values | Daily Returns |
China Securities 800 vs. Coreshares Index Tracker
Performance |
Timeline |
China Securities and Coreshares Index Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Coreshares Index Tracker
Pair trading matchups for Coreshares Index
Pair Trading with China Securities and Coreshares Index
The main advantage of trading using opposite China Securities and Coreshares Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Coreshares Index 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 Coreshares Index will offset losses from the drop in Coreshares Index's long position.China Securities vs. Guilin Seamild Foods | China Securities vs. Pengxin International Mining | China Securities vs. Zhengzhou Coal Mining | China Securities vs. Ye Chiu Metal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |