Correlation Between Aba Chemicals and Chengdu Spaceon
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By analyzing existing cross correlation between Aba Chemicals Corp and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Aba Chemicals and Chengdu Spaceon 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 Aba Chemicals with a short position of Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Chengdu Spaceon.
Diversification Opportunities for Aba Chemicals and Chengdu Spaceon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Chengdu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Aba Chemicals and Chengdu Spaceon
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Chengdu Spaceon. In addition to that, Aba Chemicals is 1.31 times more volatile than Chengdu Spaceon Electronics. It trades about -0.01 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.03 per unit of volatility. If you would invest 1,489 in Chengdu Spaceon Electronics on September 12, 2024 and sell it today you would earn a total of 307.00 from holding Chengdu Spaceon Electronics or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Aba Chemicals Corp |
| Chengdu Spaceon Elec |
Aba Chemicals and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Chengdu Spaceon
The main advantage of trading using opposite Aba Chemicals and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Chengdu Spaceon 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 Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Chengdu Spaceon vs. Gansu Jiu Steel | Chengdu Spaceon vs. Shandong Mining Machinery | Chengdu Spaceon vs. Aba Chemicals Corp | Chengdu Spaceon vs. BlueFocus Communication 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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