Correlation Between Broadex Technologies and Chengdu Xinzhu
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By analyzing existing cross correlation between Broadex Technologies Co and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Broadex Technologies and Chengdu Xinzhu 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 Broadex Technologies with a short position of Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadex Technologies and Chengdu Xinzhu.
Diversification Opportunities for Broadex Technologies and Chengdu Xinzhu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Broadex and Chengdu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Broadex Technologies Co and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge and Broadex Technologies 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 Broadex Technologies Co are associated (or correlated) with Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Broadex Technologies i.e., Broadex Technologies and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Broadex Technologies and Chengdu Xinzhu
Assuming the 90 days trading horizon Broadex Technologies Co is expected to generate 1.4 times more return on investment than Chengdu Xinzhu. However, Broadex Technologies is 1.4 times more volatile than Chengdu Xinzhu RoadBridge. It trades about 0.01 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.01 per unit of risk. If you would invest 2,490 in Broadex Technologies Co on August 25, 2024 and sell it today you would lose (257.00) from holding Broadex Technologies Co or give up 10.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadex Technologies Co vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Broadex Technologies |
| Chengdu Xinzhu RoadBridge |
Broadex Technologies and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadex Technologies and Chengdu Xinzhu
The main advantage of trading using opposite Broadex Technologies and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadex Technologies position performs unexpectedly, Chengdu Xinzhu 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 Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Broadex Technologies vs. Kweichow Moutai Co | Broadex Technologies vs. Shenzhen Mindray Bio Medical | Broadex Technologies vs. Jiangsu Pacific Quartz | Broadex Technologies vs. G bits Network Technology |
| Chengdu Xinzhu vs. China National Software | Chengdu Xinzhu vs. Liaoning Chengda Biotechnology | Chengdu Xinzhu vs. Fujian Rongji Software | Chengdu Xinzhu vs. Eastern Air Logistics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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