What is the relationship between A50 futures index and the broader market?
There is a strong correlation between A50 stock index futures and A-share market, because A50 is an index compiled by selecting 50 stocks with the largest market value from Shanghai and Shenzhen stock markets. The A50 index can predict the market trend to some extent. Why do you say that? As the trading time of A50 futures index is more flexible than that of A shares, its trading time is 9: 00- 16: 30, 17: 00-5: 15 the next day. On the one hand, the opening time of A50 futures index is earlier than that of A-shares, and the opening trend of A50 futures index has certain reference function to the market trend. On the other hand, we can find the influence of some evening information on A shares from the night market.
However, as far as different indexes of A shares are concerned, the correlation between A50 index and different indexes is different. A50 index has the strongest correlation with SSE 50 index, higher correlation with CSI 300 index, but relatively weak correlation with CSI 500 index.