Correlation Between Chengdu Xinzhu and Henan Shuanghui
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Henan Shuanghui Investment, you can compare the effects of market volatilities on Chengdu Xinzhu and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Henan Shuanghui.
Diversification Opportunities for Chengdu Xinzhu and Henan Shuanghui
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Henan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Henan Shuanghui
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 4.73 times more return on investment than Henan Shuanghui. However, Chengdu Xinzhu is 4.73 times more volatile than Henan Shuanghui Investment. It trades about 0.03 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.12 per unit of risk. If you would invest 523.00 in Chengdu Xinzhu RoadBridge on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Chengdu Xinzhu RoadBridge or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Henan Shuanghui Inve |
Chengdu Xinzhu and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Henan Shuanghui
The main advantage of trading using opposite Chengdu Xinzhu and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Chengdu Xinzhu vs. Kweichow Moutai Co | Chengdu Xinzhu vs. Contemporary Amperex Technology | Chengdu Xinzhu vs. Beijing Roborock Technology | Chengdu Xinzhu vs. BYD Co Ltd |
| Henan Shuanghui vs. XiaMen HongXin Electron tech | Henan Shuanghui vs. Dhc Software Co | Henan Shuanghui vs. Montage Technology Co | Henan Shuanghui vs. Changchun UP Optotech |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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