Correlation Between Andon Health and Chengdu Spaceon
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By analyzing existing cross correlation between Andon Health Co and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Andon Health 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 Andon Health with a short position of Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Chengdu Spaceon.
Diversification Opportunities for Andon Health and Chengdu Spaceon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Andon and Chengdu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co 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 Andon Health 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 Andon Health Co 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 Andon Health i.e., Andon Health and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Andon Health and Chengdu Spaceon
Assuming the 90 days trading horizon Andon Health Co is expected to generate 0.54 times more return on investment than Chengdu Spaceon. However, Andon Health Co is 1.84 times less risky than Chengdu Spaceon. It trades about -0.29 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.21 per unit of risk. If you would invest 4,330 in Andon Health Co on October 17, 2024 and sell it today you would lose (333.00) from holding Andon Health Co or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Andon Health |
| Chengdu Spaceon Elec |
Andon Health and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Chengdu Spaceon
The main advantage of trading using opposite Andon Health and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health 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.| Andon Health vs. Shandong Iron and | Andon Health vs. Fangda Special Steel | Andon Health vs. Sportsoul Co Ltd | Andon Health vs. Sichuan Fulin Transportation |
| Chengdu Spaceon vs. Anhui Shiny Electronic | Chengdu Spaceon vs. Anhui Jianghuai Automobile | Chengdu Spaceon vs. Ningbo Fangzheng Automobile | Chengdu Spaceon vs. Xinya Electronic 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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