Correlation Between Chengdu Kanghua and Bank of XiAn
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and Bank of XiAn, you can compare the effects of market volatilities on Chengdu Kanghua and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Bank of XiAn.
Diversification Opportunities for Chengdu Kanghua and Bank of XiAn
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Bank is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Bank of XiAn go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Bank of XiAn
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Bank of XiAn. In addition to that, Chengdu Kanghua is 1.43 times more volatile than Bank of XiAn. It trades about -0.07 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.04 per unit of volatility. If you would invest 365.00 in Bank of XiAn on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Bank of XiAn or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Bank of XiAn
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Bank of XiAn |
Chengdu Kanghua and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Bank of XiAn
The main advantage of trading using opposite Chengdu Kanghua and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn'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 |
| Bank of XiAn vs. Luyin Investment Group | Bank of XiAn vs. Jointo Energy Investment | Bank of XiAn vs. Hunan Investment Group | Bank of XiAn vs. Harbin Hatou Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |