Correlation Between Chengdu Xingrong and Qingdao Rural
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Qingdao Rural Commercial, you can compare the effects of market volatilities on Chengdu Xingrong and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Qingdao Rural.
Diversification Opportunities for Chengdu Xingrong and Qingdao Rural
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Qingdao is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Qingdao Rural go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Qingdao Rural
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.99 times more return on investment than Qingdao Rural. However, Chengdu Xingrong Investment is 1.01 times less risky than Qingdao Rural. It trades about 0.04 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about -0.04 per unit of risk. If you would invest 694.00 in Chengdu Xingrong Investment on January 24, 2025 and sell it today you would earn a total of 9.00 from holding Chengdu Xingrong Investment or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Qingdao Rural Commercial
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Qingdao Rural Commercial |
Chengdu Xingrong and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Qingdao Rural
The main advantage of trading using opposite Chengdu Xingrong and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. Agricultural Bank of | Chengdu Xingrong vs. China Construction Bank | Chengdu Xingrong vs. Bank of China |
| Qingdao Rural vs. Metro Investment Development | Qingdao Rural vs. Henan Shuanghui Investment | Qingdao Rural vs. Hunan Investment Group | Qingdao Rural vs. Tongyu Communication |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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