Correlation Between Chengdu Xingrong and China Building
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By analyzing existing cross correlation between Chengdu Xingrong Investment and China Building Material, you can compare the effects of market volatilities on Chengdu Xingrong and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and China Building.
Diversification Opportunities for Chengdu Xingrong and China Building
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and China is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and China Building go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and China Building
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the China Building. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.49 times less risky than China Building. The stock trades about -0.02 of its potential returns per unit of risk. The China Building Material is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 570.00 in China Building Material on November 3, 2024 and sell it today you would earn a total of 146.00 from holding China Building Material or generate 25.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. China Building Material
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| China Building Material |
Chengdu Xingrong and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and China Building
The main advantage of trading using opposite Chengdu Xingrong and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Chengdu Xingrong vs. Shenzhen Centralcon Investment | Chengdu Xingrong vs. Bingo Software Co | Chengdu Xingrong vs. Xiamen Insight Investment | Chengdu Xingrong vs. Fujian Boss Software |
| China Building vs. MayAir Technology Co | China Building vs. Qifeng New Material | China Building vs. Qingdao Haier Biomedical | China Building vs. Winner Medical Co |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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