Correlation Between Chengdu Xingrong and Qinghaihuading Industrial
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Chengdu Xingrong and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Qinghaihuading Industrial.
Diversification Opportunities for Chengdu Xingrong and Qinghaihuading Industrial
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and Qinghaihuading is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Qinghaihuading Industrial
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.36 times more return on investment than Qinghaihuading Industrial. However, Chengdu Xingrong Investment is 2.74 times less risky than Qinghaihuading Industrial. It trades about -0.15 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about -0.35 per unit of risk. If you would invest 738.00 in Chengdu Xingrong Investment on October 24, 2024 and sell it today you would lose (35.00) from holding Chengdu Xingrong Investment or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Qinghaihuading Industrial |
Chengdu Xingrong and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Qinghaihuading Industrial
The main advantage of trading using opposite Chengdu Xingrong and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Chengdu Xingrong vs. Changchun BCHT Biotechnology | Chengdu Xingrong vs. HanS Laser Tech | Chengdu Xingrong vs. Shanghai Rightongene Biotechnology | Chengdu Xingrong vs. Bloomage Biotechnology Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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