Correlation Between Shenzhen Centralcon and Chengdu Xingrong
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Shenzhen Centralcon and Chengdu Xingrong 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 Shenzhen Centralcon with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Chengdu Xingrong.
Diversification Opportunities for Shenzhen Centralcon and Chengdu Xingrong
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Chengdu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Chengdu Xingrong
Assuming the 90 days trading horizon Shenzhen Centralcon is expected to generate 5.16 times less return on investment than Chengdu Xingrong. In addition to that, Shenzhen Centralcon is 1.89 times more volatile than Chengdu Xingrong Investment. It trades about 0.01 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.06 per unit of volatility. If you would invest 546.00 in Chengdu Xingrong Investment on September 4, 2024 and sell it today you would earn a total of 168.00 from holding Chengdu Xingrong Investment or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Shenzhen Centralcon |
| Chengdu Xingrong Inv |
Shenzhen Centralcon and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Chengdu Xingrong
The main advantage of trading using opposite Shenzhen Centralcon and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Shenzhen Centralcon vs. Lander Sports Development | Shenzhen Centralcon vs. Longxing Chemical Stock | Shenzhen Centralcon vs. Miracll Chemicals Co | Shenzhen Centralcon vs. Sportsoul Co Ltd |
| Chengdu Xingrong vs. Wuxi Chemical Equipment | Chengdu Xingrong vs. Guangzhou Haige Communications | Chengdu Xingrong vs. CICT Mobile Communication | Chengdu Xingrong vs. Shenyang Chemical Industry |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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