Correlation Between Chengdu Kanghua and Anshan Senyuan
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Anshan Senyuan Road, you can compare the effects of market volatilities on Chengdu Kanghua and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Anshan Senyuan.
Diversification Opportunities for Chengdu Kanghua and Anshan Senyuan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Anshan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Anshan Senyuan
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to generate 0.59 times more return on investment than Anshan Senyuan. However, Chengdu Kanghua Biological is 1.69 times less risky than Anshan Senyuan. It trades about -0.32 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.38 per unit of risk. If you would invest 5,685 in Chengdu Kanghua Biological on October 15, 2024 and sell it today you would lose (679.00) from holding Chengdu Kanghua Biological or give up 11.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Anshan Senyuan Road
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Anshan Senyuan Road |
Chengdu Kanghua and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Anshan Senyuan
The main advantage of trading using opposite Chengdu Kanghua and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan'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 |
| Anshan Senyuan vs. Chengdu Kanghua Biological | Anshan Senyuan vs. Beijing Wantai Biological | Anshan Senyuan vs. Suzhou Novoprotein Scientific | Anshan Senyuan 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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