Correlation Between Chenzhou Jingui and Cansino Biologics
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Cansino Biologics, you can compare the effects of market volatilities on Chenzhou Jingui and Cansino Biologics 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 Chenzhou Jingui with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Cansino Biologics.
Diversification Opportunities for Chenzhou Jingui and Cansino Biologics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chenzhou and Cansino is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Cansino Biologics go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Cansino Biologics
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 0.86 times more return on investment than Cansino Biologics. However, Chenzhou Jingui Silver is 1.16 times less risky than Cansino Biologics. It trades about 0.02 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.04 per unit of risk. If you would invest 316.00 in Chenzhou Jingui Silver on November 2, 2024 and sell it today you would earn a total of 30.00 from holding Chenzhou Jingui Silver or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Cansino Biologics
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Cansino Biologics |
Chenzhou Jingui and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Cansino Biologics
The main advantage of trading using opposite Chenzhou Jingui and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.The idea behind Chenzhou Jingui Silver and Cansino Biologics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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