Correlation Between Chengdu Bright and Gansu Huangtai
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By analyzing existing cross correlation between Chengdu Bright Eye and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Chengdu Bright and Gansu Huangtai 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 Bright with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Bright and Gansu Huangtai.
Diversification Opportunities for Chengdu Bright and Gansu Huangtai
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Gansu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Bright Eye and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Chengdu Bright 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 Bright Eye are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Chengdu Bright i.e., Chengdu Bright and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Chengdu Bright and Gansu Huangtai
Assuming the 90 days trading horizon Chengdu Bright is expected to generate 15.0 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Chengdu Bright Eye is 1.06 times less risky than Gansu Huangtai. It trades about 0.01 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,510 in Gansu Huangtai Wine marketing on September 14, 2024 and sell it today you would earn a total of 207.00 from holding Gansu Huangtai Wine marketing or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Bright Eye vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Chengdu Bright Eye |
| Gansu Huangtai Wine |
Chengdu Bright and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Bright and Gansu Huangtai
The main advantage of trading using opposite Chengdu Bright and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Bright position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Chengdu Bright vs. Xiangyu Medical Co | Chengdu Bright vs. Nanjing Medlander Medical | Chengdu Bright vs. Huaxia Fund Management | Chengdu Bright vs. Ningbo MedicalSystem Biotechnology |
| Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Construction Bank | Gansu Huangtai vs. Agricultural Bank of | Gansu Huangtai vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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