Correlation Between Chengdu Xinzhu and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Dazhong Transportation Group, you can compare the effects of market volatilities on Chengdu Xinzhu and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Dazhong Transportation.
Diversification Opportunities for Chengdu Xinzhu and Dazhong Transportation
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Dazhong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Dazhong Transportation
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to under-perform the Dazhong Transportation. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xinzhu RoadBridge is 1.04 times less risky than Dazhong Transportation. The stock trades about -0.03 of its potential returns per unit of risk. The Dazhong Transportation Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Dazhong Transportation Group on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Dazhong Transportation Group or generate 0.0% 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. Dazhong Transportation Group
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Dazhong Transportation |
Chengdu Xinzhu and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Dazhong Transportation
The main advantage of trading using opposite Chengdu Xinzhu and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Chengdu Xinzhu vs. PetroChina Co Ltd | Chengdu Xinzhu vs. China State Construction | Chengdu Xinzhu vs. China Mobile Limited | Chengdu Xinzhu vs. Industrial and Commercial |
| Dazhong Transportation vs. PetroChina Co Ltd | Dazhong Transportation vs. China State Construction | Dazhong Transportation vs. China Mobile Limited | Dazhong Transportation vs. Industrial and Commercial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |