Correlation Between Aba Chemicals and China Resources
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By analyzing existing cross correlation between Aba Chemicals Corp and China Resources Microelectronics, you can compare the effects of market volatilities on Aba Chemicals and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and China Resources.
Diversification Opportunities for Aba Chemicals and China Resources
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and China Resources Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Micr 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Micr has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and China Resources go up and down completely randomly.
Pair Corralation between Aba Chemicals and China Resources
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.61 times more return on investment than China Resources. However, Aba Chemicals is 1.61 times more volatile than China Resources Microelectronics. It trades about -0.1 of its potential returns per unit of risk. China Resources Microelectronics is currently generating about -0.33 per unit of risk. If you would invest 877.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would lose (63.00) from holding Aba Chemicals Corp or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aba Chemicals Corp vs. China Resources Microelectroni
Performance |
| Timeline |
| Aba Chemicals Corp |
| China Resources Micr |
Aba Chemicals and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and China Resources
The main advantage of trading using opposite Aba Chemicals and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' 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 |
| China Resources vs. Gansu Jiu Steel | China Resources vs. Shandong Mining Machinery | China Resources vs. Aba Chemicals Corp | China Resources 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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