Correlation Between Chengdu Xingrong and Shaanxi Broadcast
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Chengdu Xingrong and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Shaanxi Broadcast.
Diversification Opportunities for Chengdu Xingrong and Shaanxi Broadcast
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Shaanxi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Shaanxi Broadcast
Assuming the 90 days trading horizon Chengdu Xingrong is expected to generate 27.99 times less return on investment than Shaanxi Broadcast. But when comparing it to its historical volatility, Chengdu Xingrong Investment is 1.25 times less risky than Shaanxi Broadcast. It trades about 0.01 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Shaanxi Broadcast TV on November 7, 2024 and sell it today you would earn a total of 20.00 from holding Shaanxi Broadcast TV or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Chengdu Xingrong Inv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shaanxi Broadcast |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chengdu Xingrong and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Shaanxi Broadcast
The main advantage of trading using opposite Chengdu Xingrong and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.The idea behind Chengdu Xingrong Investment and Shaanxi Broadcast TV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |