Correlation Between Chengdu Xingrong and Beijing Venustech
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Beijing Venustech, you can compare the effects of market volatilities on Chengdu Xingrong and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Beijing Venustech.
Diversification Opportunities for Chengdu Xingrong and Beijing Venustech
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Beijing Venustech go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Beijing Venustech
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Beijing Venustech. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.23 times less risky than Beijing Venustech. The stock trades about 0.0 of its potential returns per unit of risk. The Beijing Venustech is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,791 in Beijing Venustech on September 3, 2024 and sell it today you would lose (73.00) from holding Beijing Venustech or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Beijing Venustech
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Beijing Venustech |
Chengdu Xingrong and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Beijing Venustech
The main advantage of trading using opposite Chengdu Xingrong and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| Chengdu Xingrong vs. Shandong Polymer Biochemicals | Chengdu Xingrong vs. Time Publishing and | Chengdu Xingrong vs. Dymatic Chemicals | Chengdu Xingrong vs. Shandong Publishing Media |
| Beijing Venustech vs. Jinyu Bio Technology Co | Beijing Venustech vs. Tianshui Huatian Technology | Beijing Venustech vs. Xinjiang Baodi Mining | Beijing Venustech vs. Chengtun Mining Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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