Correlation Between Chengdu Kanghua and JiShi Media
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By analyzing existing cross correlation between Chengdu Kanghua Biological and JiShi Media Co, you can compare the effects of market volatilities on Chengdu Kanghua and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and JiShi Media.
Diversification Opportunities for Chengdu Kanghua and JiShi Media
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and JiShi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and JiShi Media go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and JiShi Media
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the JiShi Media. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Kanghua Biological is 1.06 times less risky than JiShi Media. The stock trades about -0.02 of its potential returns per unit of risk. The JiShi Media Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 226.00 in JiShi Media Co on August 29, 2024 and sell it today you would lose (51.00) from holding JiShi Media Co or give up 22.57% 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. JiShi Media Co
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| JiShi Media |
Chengdu Kanghua and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and JiShi Media
The main advantage of trading using opposite Chengdu Kanghua and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Chengdu Kanghua vs. Industrial and Commercial | Chengdu Kanghua vs. China Construction Bank | Chengdu Kanghua vs. Agricultural Bank of | Chengdu Kanghua vs. Bank of China |
| JiShi Media vs. Sunwave Communications Co | JiShi Media vs. Zhangjiagang Freetrade Science | JiShi Media vs. China Nonferrous Metal | JiShi Media vs. Haima Automobile Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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