Correlation Between China Securities and IPC MEXICO
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By analyzing existing cross correlation between China Securities 800 and IPC MEXICO, you can compare the effects of market volatilities on China Securities and IPC MEXICO 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 IPC MEXICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and IPC MEXICO.
Diversification Opportunities for China Securities and IPC MEXICO
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and IPC is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and IPC MEXICO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPC MEXICO 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 IPC MEXICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC MEXICO has no effect on the direction of China Securities i.e., China Securities and IPC MEXICO go up and down completely randomly.
Pair Corralation between China Securities and IPC MEXICO
Assuming the 90 days trading horizon China Securities 800 is expected to generate 1.87 times more return on investment than IPC MEXICO. However, China Securities is 1.87 times more volatile than IPC MEXICO. It trades about 0.05 of its potential returns per unit of risk. IPC MEXICO is currently generating about -0.06 per unit of risk. If you would invest 386,430 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 37,106 from holding China Securities 800 or generate 9.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 94.62% |
Values | Daily Returns |
China Securities 800 vs. IPC MEXICO
Performance |
Timeline |
China Securities and IPC MEXICO Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
IPC MEXICO
Pair trading matchups for IPC MEXICO
Pair Trading with China Securities and IPC MEXICO
The main advantage of trading using opposite China Securities and IPC MEXICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, IPC MEXICO 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 IPC MEXICO will offset losses from the drop in IPC MEXICO's long position.China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
IPC MEXICO vs. First Republic Bank | IPC MEXICO vs. McEwen Mining | IPC MEXICO vs. Applied Materials | IPC MEXICO vs. CVS Health |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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