Correlation Between IPC MEXICO and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between IPC MEXICO and China Securities 800, you can compare the effects of market volatilities on IPC MEXICO 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 IPC MEXICO with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and China Securities.
Diversification Opportunities for IPC MEXICO and China Securities
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPC and China is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO 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 IPC MEXICO 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 IPC MEXICO 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 IPC MEXICO i.e., IPC MEXICO and China Securities go up and down completely randomly.
Pair Corralation between IPC MEXICO and China Securities
Assuming the 90 days trading horizon IPC MEXICO is expected to generate 2.26 times less return on investment than China Securities. But when comparing it to its historical volatility, IPC MEXICO is 1.27 times less risky than China Securities. It trades about 0.03 of its potential returns per unit of risk. China Securities 800 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 389,356 in China Securities 800 on January 30, 2024 and sell it today you would earn a total of 3,815 from holding China Securities 800 or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
IPC MEXICO vs. China Securities 800
Performance |
Timeline |
IPC MEXICO and China Securities Volatility Contrast
Predicted Return Density |
Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
China Securities 800
Pair trading matchups for China Securities
Pair Trading with IPC MEXICO and China Securities
The main advantage of trading using opposite IPC MEXICO and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO 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.IPC MEXICO vs. New Oriental Education | IPC MEXICO vs. The Bank of | IPC MEXICO vs. Verizon Communications | IPC MEXICO vs. DXC Technology |
China Securities vs. Guangzhou Automobile Group | China Securities vs. Shaanxi Meineng Clean | China Securities vs. Xiangyang Automobile Bearing | China Securities vs. Huaibei Mining Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |