Correlation Between Chengdu Spaceon and Kangxin New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Spaceon Electronics and Kangxin New Materials, you can compare the effects of market volatilities on Chengdu Spaceon and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Kangxin New.
Diversification Opportunities for Chengdu Spaceon and Kangxin New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Kangxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Kangxin New go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Kangxin New
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to under-perform the Kangxin New. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Spaceon Electronics is 1.06 times less risky than Kangxin New. The stock trades about -0.1 of its potential returns per unit of risk. The Kangxin New Materials is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 199.00 in Kangxin New Materials on August 25, 2024 and sell it today you would earn a total of 21.00 from holding Kangxin New Materials or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Kangxin New Materials
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Kangxin New Materials |
Chengdu Spaceon and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Kangxin New
The main advantage of trading using opposite Chengdu Spaceon and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Chengdu Spaceon vs. UE Furniture Co | Chengdu Spaceon vs. Ningbo MedicalSystem Biotechnology | Chengdu Spaceon vs. Shandong Homey Aquatic | Chengdu Spaceon vs. Der International Home |
| Kangxin New vs. China Aluminum International | Kangxin New vs. Fiberhome Telecommunication Technologies | Kangxin New vs. Heilongjiang Transport Development | Kangxin New vs. Shanghai Yanpu Metal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |