Correlation Between Hongrun Construction and Cinda Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hongrun Construction Group and Cinda Securities Co, you can compare the effects of market volatilities on Hongrun Construction and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Cinda Securities.
Diversification Opportunities for Hongrun Construction and Cinda Securities
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hongrun and Cinda is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Cinda Securities go up and down completely randomly.
Pair Corralation between Hongrun Construction and Cinda Securities
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 3.04 times less return on investment than Cinda Securities. But when comparing it to its historical volatility, Hongrun Construction Group is 1.49 times less risky than Cinda Securities. It trades about 0.01 of its potential returns per unit of risk. Cinda Securities Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,179 in Cinda Securities Co on October 11, 2024 and sell it today you would earn a total of 212.00 from holding Cinda Securities Co or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
Hongrun Construction Group vs. Cinda Securities Co
Performance |
| Timeline |
| Hongrun Construction |
| Cinda Securities |
Hongrun Construction and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Cinda Securities
The main advantage of trading using opposite Hongrun Construction and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Hongrun Construction vs. Hunan Investment Group | Hongrun Construction vs. Jiangsu Yueda Investment | Hongrun Construction vs. Longmaster Information Tech | Hongrun Construction vs. Jointo Energy Investment |
| Cinda Securities vs. Xingguang Agricultural Mach | Cinda Securities vs. Hongrun Construction Group | Cinda Securities vs. Qijing Machinery | Cinda Securities vs. Lutian Machinery 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |