Correlation Between Blue Sail and Chahua Modern
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By analyzing existing cross correlation between Blue Sail Medical and Chahua Modern Housewares, you can compare the effects of market volatilities on Blue Sail 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 Blue Sail with a short position of Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Chahua Modern.
Diversification Opportunities for Blue Sail and Chahua Modern
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blue and Chahua is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical 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 Blue Sail 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 Blue Sail Medical 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 Blue Sail i.e., Blue Sail and Chahua Modern go up and down completely randomly.
Pair Corralation between Blue Sail and Chahua Modern
Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 1.79 times less risky than Chahua Modern. The stock trades about -0.04 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Chahua Modern Housewares on October 18, 2024 and sell it today you would earn a total of 1,292 from holding Chahua Modern Housewares or generate 157.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Chahua Modern Housewares
Performance |
| Timeline |
| Blue Sail Medical |
| Chahua Modern Housewares |
Blue Sail and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Chahua Modern
The main advantage of trading using opposite Blue Sail and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail 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.| Blue Sail vs. TianJin 712 Communication | Blue Sail vs. Anhui Jianghuai Automobile | Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. State Grid InformationCommunication |
| Chahua Modern vs. Zhejiang Yongjin Metal | Chahua Modern vs. Rising Nonferrous Metals | Chahua Modern vs. Xinjiang Communications Construction | Chahua Modern vs. Eastern Communications 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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