Correlation Between Chengdu Kanghua and Datang HuaYin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and Datang HuaYin Electric, you can compare the effects of market volatilities on Chengdu Kanghua and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Datang HuaYin.
Diversification Opportunities for Chengdu Kanghua and Datang HuaYin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Datang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Datang HuaYin go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Datang HuaYin
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Datang HuaYin. In addition to that, Chengdu Kanghua is 1.41 times more volatile than Datang HuaYin Electric. It trades about -0.06 of its total potential returns per unit of risk. Datang HuaYin Electric is currently generating about -0.05 per unit of volatility. If you would invest 348.00 in Datang HuaYin Electric on September 1, 2024 and sell it today you would lose (8.00) from holding Datang HuaYin Electric or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Datang HuaYin Electric
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Datang HuaYin Electric |
Chengdu Kanghua and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Datang HuaYin
The main advantage of trading using opposite Chengdu Kanghua and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Chengdu Kanghua vs. Innovative Medical Management | Chengdu Kanghua vs. Tongyu Communication | Chengdu Kanghua vs. AVIC Fund Management | Chengdu Kanghua vs. Guangdong Shenglu Telecommunication |
| Datang HuaYin vs. Chengdu Kanghua Biological | Datang HuaYin vs. Beijing Wantai Biological | Datang HuaYin vs. Suzhou Novoprotein Scientific | Datang HuaYin 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |