Correlation Between Vontron Technology and Chengdu Kanghua
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By analyzing existing cross correlation between Vontron Technology Co and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Vontron Technology 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 Vontron Technology with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontron Technology and Chengdu Kanghua.
Diversification Opportunities for Vontron Technology and Chengdu Kanghua
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vontron and Chengdu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Vontron Technology Co 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 Vontron Technology 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 Vontron Technology Co 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 Vontron Technology i.e., Vontron Technology and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Vontron Technology and Chengdu Kanghua
Assuming the 90 days trading horizon Vontron Technology Co is expected to generate 0.68 times more return on investment than Chengdu Kanghua. However, Vontron Technology Co is 1.48 times less risky than Chengdu Kanghua. It trades about -0.02 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.21 per unit of risk. If you would invest 904.00 in Vontron Technology Co on August 25, 2024 and sell it today you would lose (12.00) from holding Vontron Technology Co or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vontron Technology Co vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Vontron Technology |
| Chengdu Kanghua Biol |
Vontron Technology and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontron Technology and Chengdu Kanghua
The main advantage of trading using opposite Vontron Technology and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontron Technology 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.| Vontron Technology vs. Chengdu Kanghua Biological | Vontron Technology vs. Beijing Wantai Biological | Vontron Technology vs. Suzhou Novoprotein Scientific | Vontron Technology vs. Aluminum Corp of |
| Chengdu Kanghua vs. Longmaster Information Tech | Chengdu Kanghua vs. Yonyou Auto Information | Chengdu Kanghua vs. Weichai Heavy Machinery | Chengdu Kanghua vs. Ningbo Construction 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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