Correlation Between Chengdu Xinzhu and Oppein Home
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Oppein Home Group, you can compare the effects of market volatilities on Chengdu Xinzhu and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Oppein Home.
Diversification Opportunities for Chengdu Xinzhu and Oppein Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Oppein is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Oppein Home go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Oppein Home
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.59 times more return on investment than Oppein Home. However, Chengdu Xinzhu is 1.59 times more volatile than Oppein Home Group. It trades about 0.14 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.06 per unit of risk. If you would invest 520.00 in Chengdu Xinzhu RoadBridge on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Chengdu Xinzhu RoadBridge or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Oppein Home Group
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Oppein Home Group |
Chengdu Xinzhu and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Oppein Home
The main advantage of trading using opposite Chengdu Xinzhu and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Chengdu Xinzhu vs. Kangxin New Materials | Chengdu Xinzhu vs. De Rucci Healthy | Chengdu Xinzhu vs. PKU HealthCare Corp | Chengdu Xinzhu vs. Advanced Technology Materials |
| Oppein Home vs. TongFu Microelectronics Co | Oppein Home vs. Hangzhou Weiguang Electronic | Oppein Home vs. Xinya Electronic Co | Oppein Home vs. Integrated Electronic Systems |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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