Correlation Between Chengdu Xinzhu and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Chengdu Xinzhu and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Chengdu Kanghua.
Diversification Opportunities for Chengdu Xinzhu and Chengdu Kanghua
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Chengdu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Chengdu Kanghua
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 0.82 times more return on investment than Chengdu Kanghua. However, Chengdu Xinzhu RoadBridge is 1.21 times less risky than Chengdu Kanghua. It trades about -0.1 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.2 per unit of risk. If you would invest 502.00 in Chengdu Xinzhu RoadBridge on August 28, 2024 and sell it today you would lose (30.00) from holding Chengdu Xinzhu RoadBridge or give up 5.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Chengdu Kanghua Biol |
Chengdu Xinzhu and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Chengdu Kanghua
The main advantage of trading using opposite Chengdu Xinzhu and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Chengdu Kanghua 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 Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Chengdu Xinzhu vs. Guangdong Marubi Biotechnology | Chengdu Xinzhu vs. Xinjiang Baodi Mining | Chengdu Xinzhu vs. Everdisplay Optronics Shanghai | Chengdu Xinzhu vs. Hainan Mining Co |
| Chengdu Kanghua vs. Industrial and Commercial | Chengdu Kanghua vs. China Construction Bank | Chengdu Kanghua vs. Agricultural Bank of | Chengdu Kanghua vs. Bank of China |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |