Correlation Between Chengdu Xingrong and Beijing Sinnet
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Beijing Sinnet Technology, you can compare the effects of market volatilities on Chengdu Xingrong and Beijing Sinnet 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 Sinnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Beijing Sinnet.
Diversification Opportunities for Chengdu Xingrong and Beijing Sinnet
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Beijing Sinnet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sinnet Technology 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 Sinnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sinnet Technology has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Beijing Sinnet go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Beijing Sinnet
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.53 times more return on investment than Beijing Sinnet. However, Chengdu Xingrong Investment is 1.89 times less risky than Beijing Sinnet. It trades about -0.16 of its potential returns per unit of risk. Beijing Sinnet Technology is currently generating about -0.14 per unit of risk. If you would invest 750.00 in Chengdu Xingrong Investment on September 13, 2024 and sell it today you would lose (36.00) from holding Chengdu Xingrong Investment or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Beijing Sinnet Technology
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Beijing Sinnet Technology |
Chengdu Xingrong and Beijing Sinnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Beijing Sinnet
The main advantage of trading using opposite Chengdu Xingrong and Beijing Sinnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Beijing Sinnet 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 Sinnet will offset losses from the drop in Beijing Sinnet's long position.| Chengdu Xingrong vs. Biwin Storage Technology | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank |
| Beijing Sinnet vs. Tsingtao Brewery Co | Beijing Sinnet vs. Suzhou Douson Drilling | Beijing Sinnet vs. AVIC Fund Management | Beijing Sinnet vs. Jiujiang Shanshui Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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