Correlation Between Chengdu Kanghua and Beijing Cisri
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Beijing Cisri Gaona, you can compare the effects of market volatilities on Chengdu Kanghua and Beijing Cisri 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 Beijing Cisri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Beijing Cisri.
Diversification Opportunities for Chengdu Kanghua and Beijing Cisri
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Beijing Cisri Gaona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Cisri Gaona 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 Beijing Cisri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Cisri Gaona has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Beijing Cisri go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Beijing Cisri
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to generate 1.29 times more return on investment than Beijing Cisri. However, Chengdu Kanghua is 1.29 times more volatile than Beijing Cisri Gaona. It trades about -0.3 of its potential returns per unit of risk. Beijing Cisri Gaona is currently generating about -0.42 per unit of risk. If you would invest 5,660 in Chengdu Kanghua Biological on October 14, 2024 and sell it today you would lose (654.00) from holding Chengdu Kanghua Biological or give up 11.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Beijing Cisri Gaona
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Beijing Cisri Gaona |
Chengdu Kanghua and Beijing Cisri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Beijing Cisri
The main advantage of trading using opposite Chengdu Kanghua and Beijing Cisri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Beijing Cisri 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 Beijing Cisri will offset losses from the drop in Beijing Cisri's long position.| Chengdu Kanghua vs. Zhongshan Public Utilities | Chengdu Kanghua vs. Longxing Chemical Stock | Chengdu Kanghua vs. Guizhou Chanhen Chemical | Chengdu Kanghua vs. CITIC Guoan Information |
| Beijing Cisri vs. Chengdu Kanghua Biological | Beijing Cisri vs. Beijing Wantai Biological | Beijing Cisri vs. Suzhou Novoprotein Scientific | Beijing Cisri vs. Aluminum Corp of |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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