Correlation Between Shantou Wanshun and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantou Wanshun Package and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Chengdu Kanghua.
Diversification Opportunities for Shantou Wanshun and Chengdu Kanghua
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantou and Chengdu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Chengdu Kanghua
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.22 times more return on investment than Chengdu Kanghua. However, Shantou Wanshun is 1.22 times more volatile than Chengdu Kanghua Biological. It trades about -0.16 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.27 per unit of risk. If you would invest 490.00 in Shantou Wanshun Package on October 26, 2024 and sell it today you would lose (39.00) from holding Shantou Wanshun Package or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Shantou Wanshun Package |
| Chengdu Kanghua Biol |
Shantou Wanshun and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Chengdu Kanghua
The main advantage of trading using opposite Shantou Wanshun and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Wintao Communications Co | Shantou Wanshun vs. China Satellite Communications | Shantou Wanshun vs. TianJin 712 Communication | Shantou Wanshun vs. China Publishing Media |
| Chengdu Kanghua vs. ROPEOK Technology Group | Chengdu Kanghua vs. Shantou Wanshun Package | Chengdu Kanghua vs. Holitech Technology Co | Chengdu Kanghua vs. Shanghai Ziyan Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |