Correlation Between Chengdu Kanghua and Suzhou UIGreen
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Suzhou UIGreen Micro, you can compare the effects of market volatilities on Chengdu Kanghua and Suzhou UIGreen 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 Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Suzhou UIGreen.
Diversification Opportunities for Chengdu Kanghua and Suzhou UIGreen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Suzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Suzhou UIGreen
Assuming the 90 days trading horizon Chengdu Kanghua is expected to generate 1.77 times less return on investment than Suzhou UIGreen. But when comparing it to its historical volatility, Chengdu Kanghua Biological is 1.22 times less risky than Suzhou UIGreen. It trades about 0.03 of its potential returns per unit of risk. Suzhou UIGreen Micro is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,159 in Suzhou UIGreen Micro on September 5, 2024 and sell it today you would earn a total of 317.00 from holding Suzhou UIGreen Micro or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Suzhou UIGreen Micro
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Suzhou UIGreen Micro |
Chengdu Kanghua and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Suzhou UIGreen
The main advantage of trading using opposite Chengdu Kanghua and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen's long position.| Chengdu Kanghua vs. Yingde Greatchem Chemicals | Chengdu Kanghua vs. Guangdong Jingyi Metal | Chengdu Kanghua vs. Aluminum Corp of | Chengdu Kanghua vs. YLZ Information Tech |
| Suzhou UIGreen vs. Easyhome New Retail | Suzhou UIGreen vs. Shanghai Metersbonwe FashionAccessories | Suzhou UIGreen vs. UE Furniture Co | Suzhou UIGreen vs. Semiconductor Manufacturing Electronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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