Correlation Between Hongrun Construction and CSG Holding
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By analyzing existing cross correlation between Hongrun Construction Group and CSG Holding Co, you can compare the effects of market volatilities on Hongrun Construction and CSG Holding 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 Hongrun Construction with a short position of CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and CSG Holding.
Diversification Opportunities for Hongrun Construction and CSG Holding
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hongrun and CSG is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and CSG Holding go up and down completely randomly.
Pair Corralation between Hongrun Construction and CSG Holding
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 0.87 times more return on investment than CSG Holding. However, Hongrun Construction Group is 1.15 times less risky than CSG Holding. It trades about -0.04 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.28 per unit of risk. If you would invest 521.00 in Hongrun Construction Group on November 3, 2024 and sell it today you would lose (9.00) from holding Hongrun Construction Group or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. CSG Holding Co
Performance |
| Timeline |
| Hongrun Construction |
| CSG Holding |
Hongrun Construction and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and CSG Holding
The main advantage of trading using opposite Hongrun Construction and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Hongrun Construction vs. Kidswant Children Products | Hongrun Construction vs. Shandong Publishing Media | Hongrun Construction vs. COL Digital Publishing | Hongrun Construction vs. Duzhe Publishing Media |
| CSG Holding vs. Zijin Mining Group | CSG Holding vs. Wanhua Chemical Group | CSG Holding vs. Baoshan Iron Steel | CSG Holding vs. Shandong Gold Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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