Correlation Between Chengdu Spaceon and Zhejiang Construction
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Zhejiang Construction Investment, you can compare the effects of market volatilities on Chengdu Spaceon and Zhejiang Construction 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 Spaceon with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Zhejiang Construction.
Diversification Opportunities for Chengdu Spaceon and Zhejiang Construction
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Zhejiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Chengdu Spaceon 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 Spaceon Electronics are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Zhejiang Construction
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.91 times more return on investment than Zhejiang Construction. However, Chengdu Spaceon Electronics is 1.1 times less risky than Zhejiang Construction. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.04 per unit of risk. If you would invest 1,608 in Chengdu Spaceon Electronics on September 3, 2024 and sell it today you would lose (31.00) from holding Chengdu Spaceon Electronics or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Zhejiang Construction |
Chengdu Spaceon and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Zhejiang Construction
The main advantage of trading using opposite Chengdu Spaceon and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. China Construction Bank | Chengdu Spaceon vs. Postal Savings Bank | Chengdu Spaceon vs. Bank of Communications |
| Zhejiang Construction vs. Chengdu Spaceon Electronics | Zhejiang Construction vs. Anhui Gujing Distillery | Zhejiang Construction vs. Western Metal Materials | Zhejiang Construction vs. China Asset Management |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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