Correlation Between Chengdu Xinzhu and King Strong
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and King Strong New Material, you can compare the effects of market volatilities on Chengdu Xinzhu and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and King Strong.
Diversification Opportunities for Chengdu Xinzhu and King Strong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and King is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and King Strong go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and King Strong
Assuming the 90 days trading horizon Chengdu Xinzhu is expected to generate 2.39 times less return on investment than King Strong. But when comparing it to its historical volatility, Chengdu Xinzhu RoadBridge is 1.15 times less risky than King Strong. It trades about 0.01 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,123 in King Strong New Material on September 3, 2024 and sell it today you would earn a total of 257.00 from holding King Strong New Material or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. King Strong New Material
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| King Strong New |
Chengdu Xinzhu and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and King Strong
The main advantage of trading using opposite Chengdu Xinzhu and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Chengdu Xinzhu vs. Cultural Investment Holdings | Chengdu Xinzhu vs. Gome Telecom Equipment | Chengdu Xinzhu vs. Bus Online Co | Chengdu Xinzhu vs. Holitech Technology Co |
| King Strong vs. Cultural Investment Holdings | King Strong vs. Gome Telecom Equipment | King Strong vs. Bus Online Co | King Strong vs. Holitech Technology 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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