Correlation Between Chengdu Spaceon and Hunan Tyen
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Hunan Tyen Machinery, you can compare the effects of market volatilities on Chengdu Spaceon and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Hunan Tyen.
Diversification Opportunities for Chengdu Spaceon and Hunan Tyen
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Hunan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Hunan Tyen go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Hunan Tyen
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 3.11 times less return on investment than Hunan Tyen. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.13 times less risky than Hunan Tyen. It trades about 0.01 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Hunan Tyen Machinery on October 11, 2024 and sell it today you would lose (2.00) from holding Hunan Tyen Machinery or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Hunan Tyen Machinery |
Chengdu Spaceon and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Hunan Tyen
The main advantage of trading using opposite Chengdu Spaceon and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Chengdu Spaceon vs. Shaanxi Meineng Clean | Chengdu Spaceon vs. Ingenic Semiconductor | Chengdu Spaceon vs. Yuanjie Semiconductor Technology | Chengdu Spaceon vs. Rising Nonferrous Metals |
| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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