Correlation Between Shaanxi Meineng and Chahua Modern
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Chahua Modern Housewares, you can compare the effects of market volatilities on Shaanxi Meineng and Chahua Modern 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 Shaanxi Meineng with a short position of Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Chahua Modern.
Diversification Opportunities for Shaanxi Meineng and Chahua Modern
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shaanxi and Chahua is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Chahua Modern go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Chahua Modern
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Meineng Clean is 1.54 times less risky than Chahua Modern. The stock trades about -0.19 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,163 in Chahua Modern Housewares on October 17, 2024 and sell it today you would lose (52.00) from holding Chahua Modern Housewares or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Chahua Modern Housewares
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Chahua Modern Housewares |
Shaanxi Meineng and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Chahua Modern
The main advantage of trading using opposite Shaanxi Meineng and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Shaanxi Meineng vs. Henan Shuanghui Investment | Shaanxi Meineng vs. Fujian Wanchen Biotechnology | Shaanxi Meineng vs. Tieling Newcity Investment | Shaanxi Meineng vs. Cultural Investment Holdings |
| Chahua Modern vs. Sichuan Hebang Biotechnology | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. Keda Clean Energy | Chahua Modern vs. Fujian Wanchen Biotechnology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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