Correlation Between Chengdu Xinzhu and Sunny Loan
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Sunny Loan Top, you can compare the effects of market volatilities on Chengdu Xinzhu and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Sunny Loan.
Diversification Opportunities for Chengdu Xinzhu and Sunny Loan
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengdu and Sunny is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Sunny Loan go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Sunny Loan
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.15 times more return on investment than Sunny Loan. However, Chengdu Xinzhu is 1.15 times more volatile than Sunny Loan Top. It trades about -0.09 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.28 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Sunny Loan Top
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Sunny Loan Top |
Chengdu Xinzhu and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Sunny Loan
The main advantage of trading using opposite Chengdu Xinzhu and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan'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 |
| Sunny Loan vs. Vohringer Home Technology | Sunny Loan vs. Xiamen Goldenhome Co | Sunny Loan vs. Beijing Kingsoft Office | Sunny Loan vs. Eastern Communications 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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