Correlation Between Chengdu Kanghua and Andon Health
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Andon Health Co, you can compare the effects of market volatilities on Chengdu Kanghua and Andon Health 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 Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Andon Health.
Diversification Opportunities for Chengdu Kanghua and Andon Health
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Andon is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Andon Health go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Andon Health
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Andon Health. In addition to that, Chengdu Kanghua is 1.37 times more volatile than Andon Health Co. It trades about 0.0 of its total potential returns per unit of risk. Andon Health Co is currently generating about 0.03 per unit of volatility. If you would invest 3,760 in Andon Health Co on September 4, 2024 and sell it today you would earn a total of 600.00 from holding Andon Health Co or generate 15.96% 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. Andon Health Co
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Andon Health |
Chengdu Kanghua and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Andon Health
The main advantage of trading using opposite Chengdu Kanghua and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Chengdu Kanghua vs. Sichuan Fulin Transportation | Chengdu Kanghua vs. Dazhong Transportation Group | Chengdu Kanghua vs. Sportsoul Co Ltd | Chengdu Kanghua vs. Sichuan Teway Food |
| Andon Health vs. Kweichow Moutai Co | Andon Health vs. Contemporary Amperex Technology | Andon Health vs. G bits Network Technology | Andon Health vs. Beijing Roborock Technology |
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.
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