Correlation Between Zhongshan Public and Chengdu Kanghua
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By analyzing existing cross correlation between Zhongshan Public Utilities and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Zhongshan Public and Chengdu Kanghua 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 Zhongshan Public with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Chengdu Kanghua.
Diversification Opportunities for Zhongshan Public and Chengdu Kanghua
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongshan and Chengdu is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Zhongshan Public and Chengdu Kanghua
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.73 times more return on investment than Chengdu Kanghua. However, Zhongshan Public Utilities is 1.38 times less risky than Chengdu Kanghua. It trades about -0.18 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.3 per unit of risk. If you would invest 906.00 in Zhongshan Public Utilities on October 14, 2024 and sell it today you would lose (47.00) from holding Zhongshan Public Utilities or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Zhongshan Public Uti |
| Chengdu Kanghua Biol |
Zhongshan Public and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Chengdu Kanghua
The main advantage of trading using opposite Zhongshan Public and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Zhongshan Public vs. Runjian Communication Co | Zhongshan Public vs. State Grid InformationCommunication | Zhongshan Public vs. Wuhan Yangtze Communication | Zhongshan Public vs. Western Metal Materials |
| Chengdu Kanghua vs. Zhongshan Public Utilities | Chengdu Kanghua vs. Longxing Chemical Stock | Chengdu Kanghua vs. Guizhou Chanhen Chemical | Chengdu Kanghua vs. CITIC Guoan Information |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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