Correlation Between Porton Fine and Chengdu Kanghua
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By analyzing existing cross correlation between Porton Fine Chemicals and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Porton Fine 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 Porton Fine with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Chengdu Kanghua.
Diversification Opportunities for Porton Fine and Chengdu Kanghua
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Porton and Chengdu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals 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 Porton Fine 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 Porton Fine Chemicals 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 Porton Fine i.e., Porton Fine and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Porton Fine and Chengdu Kanghua
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Chengdu Kanghua. In addition to that, Porton Fine is 1.14 times more volatile than Chengdu Kanghua Biological. It trades about -0.03 of its total potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.02 per unit of volatility. If you would invest 9,260 in Chengdu Kanghua Biological on September 3, 2024 and sell it today you would lose (3,497) from holding Chengdu Kanghua Biological or give up 37.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Porton Fine Chemicals |
| Chengdu Kanghua Biol |
Porton Fine and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Chengdu Kanghua
The main advantage of trading using opposite Porton Fine and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine 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.| Porton Fine vs. Chengdu Kanghua Biological | Porton Fine vs. Beijing Wantai Biological | Porton Fine vs. Suzhou Novoprotein Scientific | Porton Fine vs. Aluminum Corp of |
| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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