Correlation Between China Securities and BIST Electricity
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By analyzing existing cross correlation between China Securities 800 and BIST Electricity, you can compare the effects of market volatilities on China Securities and BIST Electricity 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 BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and BIST Electricity.
Diversification Opportunities for China Securities and BIST Electricity
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and BIST is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity 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 BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of China Securities i.e., China Securities and BIST Electricity go up and down completely randomly.
Pair Corralation between China Securities and BIST Electricity
Assuming the 90 days trading horizon China Securities is expected to generate 17.9 times less return on investment than BIST Electricity. But when comparing it to its historical volatility, China Securities 800 is 1.88 times less risky than BIST Electricity. It trades about 0.02 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 55,221 in BIST Electricity on February 1, 2024 and sell it today you would earn a total of 4,128 from holding BIST Electricity or generate 7.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
China Securities 800 vs. BIST Electricity
Performance |
Timeline |
China Securities and BIST Electricity Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with China Securities and BIST Electricity
The main advantage of trading using opposite China Securities and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, BIST Electricity 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 BIST Electricity will offset losses from the drop in BIST Electricity'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 |
BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Sekerbank TAS | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. Akbank TAS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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