Correlation Between Beijing Cisri and Chengdu Kanghua
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By analyzing existing cross correlation between Beijing Cisri Gaona and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Beijing Cisri and Chengdu Kanghua 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 Beijing Cisri with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Cisri and Chengdu Kanghua.
Diversification Opportunities for Beijing Cisri and Chengdu Kanghua
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Chengdu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Cisri Gaona and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Beijing Cisri 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 Beijing Cisri Gaona are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Beijing Cisri i.e., Beijing Cisri and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Beijing Cisri and Chengdu Kanghua
Assuming the 90 days trading horizon Beijing Cisri is expected to generate 12.06 times less return on investment than Chengdu Kanghua. But when comparing it to its historical volatility, Beijing Cisri Gaona is 1.18 times less risky than Chengdu Kanghua. It trades about 0.0 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,323 in Chengdu Kanghua Biological on October 18, 2024 and sell it today you would lose (135.00) from holding Chengdu Kanghua Biological or give up 2.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.17% |
Values | Daily Returns |
Beijing Cisri Gaona vs. Chengdu Kanghua Biological
Performance |
Timeline |
Beijing Cisri Gaona |
Chengdu Kanghua Biol |
Beijing Cisri and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Cisri and Chengdu Kanghua
The main advantage of trading using opposite Beijing Cisri and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Cisri position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.Beijing Cisri vs. Chengdu Kanghua Biological | Beijing Cisri vs. Beijing Wantai Biological | Beijing Cisri vs. Suzhou Novoprotein Scientific | Beijing Cisri vs. Aluminum Corp of |
Chengdu Kanghua vs. Xiandai Investment Co | Chengdu Kanghua vs. Vanfund Urban Investment | Chengdu Kanghua vs. Nuode Investment Co | Chengdu Kanghua vs. Dazhong Transportation Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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