Correlation Between ChengDu Hi and Emdoor Information
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Emdoor Information Co, you can compare the effects of market volatilities on ChengDu Hi and Emdoor Information 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 Hi with a short position of Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Emdoor Information.
Diversification Opportunities for ChengDu Hi and Emdoor Information
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChengDu and Emdoor is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information and ChengDu Hi 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 Hi Tech Development are associated (or correlated) with Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Emdoor Information go up and down completely randomly.
Pair Corralation between ChengDu Hi and Emdoor Information
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to generate 1.34 times more return on investment than Emdoor Information. However, ChengDu Hi is 1.34 times more volatile than Emdoor Information Co. It trades about 0.18 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.19 per unit of risk. If you would invest 3,892 in ChengDu Hi Tech Development on September 12, 2024 and sell it today you would earn a total of 2,116 from holding ChengDu Hi Tech Development or generate 54.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Emdoor Information Co
Performance |
| Timeline |
| ChengDu Hi Tech |
| Emdoor Information |
ChengDu Hi and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Emdoor Information
The main advantage of trading using opposite ChengDu Hi and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| ChengDu Hi vs. China Life Insurance | ChengDu Hi vs. Cinda Securities Co | ChengDu Hi vs. Piotech Inc A | ChengDu Hi vs. Dongxing Sec Co |
| Emdoor Information vs. Biwin Storage Technology | Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Industrial and Commercial | Emdoor Information vs. China Construction Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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