Correlation Between Chengdu Xingrong and HeNan Splendor
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By analyzing existing cross correlation between Chengdu Xingrong Investment and HeNan Splendor Science, you can compare the effects of market volatilities on Chengdu Xingrong and HeNan Splendor 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 Chengdu Xingrong with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and HeNan Splendor.
Diversification Opportunities for Chengdu Xingrong and HeNan Splendor
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and HeNan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and HeNan Splendor go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and HeNan Splendor
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the HeNan Splendor. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.49 times less risky than HeNan Splendor. The stock trades about -0.02 of its potential returns per unit of risk. The HeNan Splendor Science is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 825.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 223.00 from holding HeNan Splendor Science or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. HeNan Splendor Science
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| HeNan Splendor Science |
Chengdu Xingrong and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and HeNan Splendor
The main advantage of trading using opposite Chengdu Xingrong and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Chengdu Xingrong vs. Shenzhen Centralcon Investment | Chengdu Xingrong vs. Bingo Software Co | Chengdu Xingrong vs. Xiamen Insight Investment | Chengdu Xingrong vs. Fujian Boss Software |
| HeNan Splendor vs. Qiaoyin Environmental Tech | HeNan Splendor vs. Shanghai Ziyan Foods | HeNan Splendor vs. Namchow Food Group | HeNan Splendor vs. Dynagreen Environmental Protection |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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