Correlation Between Coreshares Index and China Securities
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By analyzing existing cross correlation between Coreshares Index Tracker and China Securities 800, you can compare the effects of market volatilities on Coreshares Index and China Securities 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 Coreshares Index with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and China Securities.
Diversification Opportunities for Coreshares Index and China Securities
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coreshares and China is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Coreshares Index 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 Coreshares Index Tracker are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Coreshares Index i.e., Coreshares Index and China Securities go up and down completely randomly.
Pair Corralation between Coreshares Index and China Securities
Assuming the 90 days trading horizon Coreshares Index is expected to generate 30.95 times less return on investment than China Securities. But when comparing it to its historical volatility, Coreshares Index Tracker is 2.4 times less risky than China Securities. It trades about 0.01 of its potential returns per unit of risk. China Securities 800 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 346,857 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 76,679 from holding China Securities 800 or generate 22.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 92.19% |
Values | Daily Returns |
Coreshares Index Tracker vs. China Securities 800
Performance |
Timeline |
Coreshares Index and China Securities Volatility Contrast
Predicted Return Density |
Returns |
Coreshares Index Tracker
Pair trading matchups for Coreshares Index
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Coreshares Index and China Securities
The main advantage of trading using opposite Coreshares Index and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, China Securities 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 Securities will offset losses from the drop in China Securities' long position.Coreshares Index vs. FNB ETN on | Coreshares Index vs. Satrix MSCI World | Coreshares Index vs. GSETNC | Coreshares Index vs. Satrix Swix Top |
China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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