Correlation Between Chenzhou Jingui and Beijing Tongyizhong
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Beijing Tongyizhong New, you can compare the effects of market volatilities on Chenzhou Jingui and Beijing Tongyizhong 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 Beijing Tongyizhong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Beijing Tongyizhong.
Diversification Opportunities for Chenzhou Jingui and Beijing Tongyizhong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chenzhou and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Beijing Tongyizhong New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tongyizhong New 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 Beijing Tongyizhong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tongyizhong New has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Beijing Tongyizhong go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Beijing Tongyizhong
Assuming the 90 days trading horizon Chenzhou Jingui is expected to generate 1.09 times less return on investment than Beijing Tongyizhong. But when comparing it to its historical volatility, Chenzhou Jingui Silver is 1.46 times less risky than Beijing Tongyizhong. It trades about 0.08 of its potential returns per unit of risk. Beijing Tongyizhong New is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,235 in Beijing Tongyizhong New on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Beijing Tongyizhong New or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Beijing Tongyizhong New
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Beijing Tongyizhong New |
Chenzhou Jingui and Beijing Tongyizhong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Beijing Tongyizhong
The main advantage of trading using opposite Chenzhou Jingui and Beijing Tongyizhong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Beijing Tongyizhong 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 Beijing Tongyizhong will offset losses from the drop in Beijing Tongyizhong's long position.| Chenzhou Jingui vs. Thinkingdom Media Group | Chenzhou Jingui vs. Sinomach Automobile Co | Chenzhou Jingui vs. Omnijoi Media Corp | Chenzhou Jingui vs. Simei Media Co |
| Beijing Tongyizhong vs. Dhc Software Co | Beijing Tongyizhong vs. Goodwill E Health | Beijing Tongyizhong vs. Heren Health Co | Beijing Tongyizhong vs. Meinian Onehealth Healthcare |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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