Correlation Between Chengdu Xingrong and Zhongzhu Medical
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Chengdu Xingrong and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Zhongzhu Medical.
Diversification Opportunities for Chengdu Xingrong and Zhongzhu Medical
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and Zhongzhu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Zhongzhu Medical
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.6 times more return on investment than Zhongzhu Medical. However, Chengdu Xingrong Investment is 1.66 times less risky than Zhongzhu Medical. It trades about 0.07 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.11 per unit of risk. If you would invest 705.00 in Chengdu Xingrong Investment on October 30, 2024 and sell it today you would earn a total of 26.00 from holding Chengdu Xingrong Investment or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Zhongzhu Medical Holdings |
Chengdu Xingrong and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Zhongzhu Medical
The main advantage of trading using opposite Chengdu Xingrong and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Chengdu Xingrong vs. Daoming OpticsChemical Co | Chengdu Xingrong vs. Tongling Nonferrous Metals | Chengdu Xingrong vs. Zhejiang Zhengguang Industrial | Chengdu Xingrong vs. Xilong Chemical Co |
| Zhongzhu Medical vs. Beijing Sanyuan Foods | Zhongzhu Medical vs. Great Sun Foods Co | Zhongzhu Medical vs. HaiXin Foods Co | Zhongzhu Medical vs. China Mobile Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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