Correlation Between China Securities and TCL Zhonghuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and TCL Zhonghuan Renewable, you can compare the effects of market volatilities on China Securities and TCL Zhonghuan 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 TCL Zhonghuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and TCL Zhonghuan.
Diversification Opportunities for China Securities and TCL Zhonghuan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and TCL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and TCL Zhonghuan Renewable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCL Zhonghuan Renewable 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 TCL Zhonghuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCL Zhonghuan Renewable has no effect on the direction of China Securities i.e., China Securities and TCL Zhonghuan go up and down completely randomly.
Pair Corralation between China Securities and TCL Zhonghuan
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.62 times more return on investment than TCL Zhonghuan. However, China Securities 800 is 1.62 times less risky than TCL Zhonghuan. It trades about 0.13 of its potential returns per unit of risk. TCL Zhonghuan Renewable is currently generating about -0.27 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. TCL Zhonghuan Renewable
Performance |
Timeline |
China Securities and TCL Zhonghuan Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
TCL Zhonghuan Renewable
Pair trading matchups for TCL Zhonghuan
Pair Trading with China Securities and TCL Zhonghuan
The main advantage of trading using opposite China Securities and TCL Zhonghuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, TCL Zhonghuan 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 TCL Zhonghuan will offset losses from the drop in TCL Zhonghuan'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 |
TCL Zhonghuan vs. Ming Yang Smart | TCL Zhonghuan vs. 159681 | TCL Zhonghuan vs. 159005 | TCL Zhonghuan vs. Loctek Ergonomic Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Stocks Directory Find actively traded stocks across global markets |