Correlation Between China Galaxy and China Marine
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By analyzing existing cross correlation between China Galaxy Securities and China Marine Information, you can compare the effects of market volatilities on China Galaxy and China Marine 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 Galaxy with a short position of China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and China Marine.
Diversification Opportunities for China Galaxy and China Marine
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information and China Galaxy 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 Galaxy Securities are associated (or correlated) with China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of China Galaxy i.e., China Galaxy and China Marine go up and down completely randomly.
Pair Corralation between China Galaxy and China Marine
Assuming the 90 days trading horizon China Galaxy Securities is expected to generate 0.96 times more return on investment than China Marine. However, China Galaxy Securities is 1.04 times less risky than China Marine. It trades about 0.06 of its potential returns per unit of risk. China Marine Information is currently generating about 0.03 per unit of risk. If you would invest 915.00 in China Galaxy Securities on September 26, 2024 and sell it today you would earn a total of 665.00 from holding China Galaxy Securities or generate 72.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Galaxy Securities vs. China Marine Information
Performance |
Timeline |
China Galaxy Securities |
China Marine Information |
China Galaxy and China Marine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Galaxy and China Marine
The main advantage of trading using opposite China Galaxy and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.China Galaxy vs. Kweichow Moutai Co | China Galaxy vs. Contemporary Amperex Technology | China Galaxy vs. G bits Network Technology | China Galaxy vs. BYD Co Ltd |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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