Correlation Between Chengdu Spaceon and Guangdong Jinming
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Chengdu Spaceon and Guangdong Jinming 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 Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Guangdong Jinming.
Diversification Opportunities for Chengdu Spaceon and Guangdong Jinming
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming 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 Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Guangdong Jinming
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 1.83 times less return on investment than Guangdong Jinming. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.62 times less risky than Guangdong Jinming. It trades about 0.05 of its potential returns per unit of risk. Guangdong Jinming Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Guangdong Jinming Machinery on August 31, 2024 and sell it today you would earn a total of 133.00 from holding Guangdong Jinming Machinery or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Guangdong Jinming Machinery
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Guangdong Jinming |
Chengdu Spaceon and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Guangdong Jinming
The main advantage of trading using opposite Chengdu Spaceon and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Chengdu Spaceon vs. MayAir Technology Co | Chengdu Spaceon vs. Guangzhou Dongfang Hotel | Chengdu Spaceon vs. Sanbo Hospital Management | Chengdu Spaceon vs. De Rucci Healthy |
| Guangdong Jinming vs. Cultural Investment Holdings | Guangdong Jinming vs. Gome Telecom Equipment | Guangdong Jinming vs. Bus Online Co | Guangdong Jinming vs. Holitech Technology Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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