Correlation Between Chengdu Kanghua and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Chengdu Kanghua and Shaanxi Meineng 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 Chengdu Kanghua with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Shaanxi Meineng.
Diversification Opportunities for Chengdu Kanghua and Shaanxi Meineng
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Shaanxi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Chengdu Kanghua 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 Chengdu Kanghua Biological are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Shaanxi Meineng
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Kanghua Biological is 1.39 times less risky than Shaanxi Meineng. The stock trades about -0.12 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,212 in Shaanxi Meineng Clean on November 5, 2024 and sell it today you would earn a total of 43.00 from holding Shaanxi Meineng Clean or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Shaanxi Meineng Clean |
Chengdu Kanghua and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Shaanxi Meineng
The main advantage of trading using opposite Chengdu Kanghua and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Chengdu Kanghua vs. Zhejiang Huatong Meat | Chengdu Kanghua vs. Jiangsu Financial Leasing | Chengdu Kanghua vs. Hubeiyichang Transportation Group | Chengdu Kanghua vs. China Sports Industry |
| Shaanxi Meineng vs. Agricultural Bank of | Shaanxi Meineng vs. Industrial and Commercial | Shaanxi Meineng vs. Bank of China | Shaanxi Meineng vs. China Construction Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |