Correlation Between Chengdu Xingrong and Shenzhen Fortune
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Chengdu Xingrong and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Shenzhen Fortune.
Diversification Opportunities for Chengdu Xingrong and Shenzhen Fortune
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Shenzhen Fortune
Assuming the 90 days trading horizon Chengdu Xingrong is expected to generate 1.75 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Chengdu Xingrong Investment is 2.5 times less risky than Shenzhen Fortune. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14,469 in Shenzhen Fortune Trend on September 4, 2024 and sell it today you would earn a total of 3,541 from holding Shenzhen Fortune Trend or generate 24.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Shenzhen Fortune Trend |
Chengdu Xingrong and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Shenzhen Fortune
The main advantage of trading using opposite Chengdu Xingrong and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Chengdu Xingrong vs. Wuxi Chemical Equipment | Chengdu Xingrong vs. Guangzhou Haige Communications | Chengdu Xingrong vs. CICT Mobile Communication | Chengdu Xingrong vs. Shenyang Chemical Industry |
| Shenzhen Fortune vs. Qijing Machinery | Shenzhen Fortune vs. StarPower Semiconductor | Shenzhen Fortune vs. Shandong Mining Machinery | Shenzhen Fortune vs. Shaanxi Construction Machinery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |