Correlation Between Hunan Mendale and Chengdu Spaceon
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Hunan Mendale and Chengdu Spaceon 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 Hunan Mendale with a short position of Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Chengdu Spaceon.
Diversification Opportunities for Hunan Mendale and Chengdu Spaceon
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Chengdu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Hunan Mendale and Chengdu Spaceon
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.14 times more return on investment than Chengdu Spaceon. However, Hunan Mendale is 1.14 times more volatile than Chengdu Spaceon Electronics. It trades about 0.29 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.08 per unit of risk. If you would invest 283.00 in Hunan Mendale Hometextile on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Hunan Mendale Hometextile or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Chengdu Spaceon Elec |
Hunan Mendale and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Chengdu Spaceon
The main advantage of trading using opposite Hunan Mendale and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Hunan Mendale vs. Nanjing Putian Telecommunications | Hunan Mendale vs. Tianjin Realty Development | Hunan Mendale vs. Kangyue Technology Co | Hunan Mendale vs. Shenzhen Hifuture Electric |
| Chengdu Spaceon vs. Gem Year Industrial Co | Chengdu Spaceon vs. Huafa Industrial Co | Chengdu Spaceon vs. Jiangxi Selon Industrial | Chengdu Spaceon vs. Tongyu Communication |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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