Correlation Between HeNan Splendor and Chongqing Sokon
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By analyzing existing cross correlation between HeNan Splendor Science and Chongqing Sokon Ind, you can compare the effects of market volatilities on HeNan Splendor and Chongqing Sokon 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 HeNan Splendor with a short position of Chongqing Sokon. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Chongqing Sokon.
Diversification Opportunities for HeNan Splendor and Chongqing Sokon
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HeNan and Chongqing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Chongqing Sokon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sokon Ind and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Chongqing Sokon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sokon Ind has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Chongqing Sokon go up and down completely randomly.
Pair Corralation between HeNan Splendor and Chongqing Sokon
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.49 times more return on investment than Chongqing Sokon. However, HeNan Splendor is 1.49 times more volatile than Chongqing Sokon Ind. It trades about 0.17 of its potential returns per unit of risk. Chongqing Sokon Ind is currently generating about 0.08 per unit of risk. If you would invest 947.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 101.00 from holding HeNan Splendor Science or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Chongqing Sokon Ind
Performance |
| Timeline |
| HeNan Splendor Science |
| Chongqing Sokon Ind |
HeNan Splendor and Chongqing Sokon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Chongqing Sokon
The main advantage of trading using opposite HeNan Splendor and Chongqing Sokon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Chongqing Sokon 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 Chongqing Sokon will offset losses from the drop in Chongqing Sokon's long position.| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
| Chongqing Sokon vs. Chison Medical Technologies | Chongqing Sokon vs. Hengkang Medical Group | Chongqing Sokon vs. Sichuan Fulin Transportation | Chongqing Sokon vs. Longjian Road Bridge |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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