Correlation Between Chengdu Xinzhu and Bohai Leasing
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Bohai Leasing Co, you can compare the effects of market volatilities on Chengdu Xinzhu and Bohai Leasing 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 Chengdu Xinzhu with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Bohai Leasing.
Diversification Opportunities for Chengdu Xinzhu and Bohai Leasing
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Bohai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Bohai Leasing go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Bohai Leasing
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 2.7 times more return on investment than Bohai Leasing. However, Chengdu Xinzhu is 2.7 times more volatile than Bohai Leasing Co. It trades about -0.09 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.43 per unit of risk. If you would invest 578.00 in Chengdu Xinzhu RoadBridge on October 16, 2024 and sell it today you would lose (61.00) from holding Chengdu Xinzhu RoadBridge or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Bohai Leasing Co
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Bohai Leasing |
Chengdu Xinzhu and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Bohai Leasing
The main advantage of trading using opposite Chengdu Xinzhu and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Chengdu Xinzhu vs. Fujian Oriental Silver | Chengdu Xinzhu vs. Xinjiang Baodi Mining | Chengdu Xinzhu vs. Shenzhen Silver Basis | Chengdu Xinzhu vs. Wuhan Hvsen Biotechnology |
| Bohai Leasing vs. CITIC Guoan Information | Bohai Leasing vs. CSSC Offshore Marine | Bohai Leasing vs. East Money Information | Bohai Leasing vs. Sanxiang Advanced Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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