Correlation Between Chengdu Spaceon and Oppein Home
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Oppein Home Group, you can compare the effects of market volatilities on Chengdu Spaceon and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Oppein Home.
Diversification Opportunities for Chengdu Spaceon and Oppein Home
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Oppein is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Oppein Home go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Oppein Home
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 1.63 times less return on investment than Oppein Home. In addition to that, Chengdu Spaceon is 1.01 times more volatile than Oppein Home Group. It trades about 0.1 of its total potential returns per unit of risk. Oppein Home Group is currently generating about 0.16 per unit of volatility. If you would invest 7,202 in Oppein Home Group on September 14, 2024 and sell it today you would earn a total of 623.00 from holding Oppein Home Group or generate 8.65% 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. Oppein Home Group
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Oppein Home Group |
Chengdu Spaceon and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Oppein Home
The main advantage of trading using opposite Chengdu Spaceon and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Chengdu Spaceon vs. Gem Year Industrial Co | Chengdu Spaceon vs. Huafa Industrial Co | Chengdu Spaceon vs. Jiangxi Selon Industrial | Chengdu Spaceon vs. Tongyu Communication |
| Oppein Home vs. Lutian Machinery Co | Oppein Home vs. China Longyuan Power | Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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