Correlation Between Chenming Mold and In Win
Can any of the company-specific risk be diversified away by investing in both Chenming Mold and In Win at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chenming Mold and In Win into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chenming Mold Industrial and In Win Development, you can compare the effects of market volatilities on Chenming Mold and In Win 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 Chenming Mold with a short position of In Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenming Mold and In Win.
Diversification Opportunities for Chenming Mold and In Win
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chenming and 6117 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chenming Mold Industrial and In Win Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In Win Development and Chenming Mold 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 Chenming Mold Industrial are associated (or correlated) with In Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In Win Development has no effect on the direction of Chenming Mold i.e., Chenming Mold and In Win go up and down completely randomly.
Pair Corralation between Chenming Mold and In Win
Assuming the 90 days trading horizon Chenming Mold Industrial is expected to generate 1.62 times more return on investment than In Win. However, Chenming Mold is 1.62 times more volatile than In Win Development. It trades about 0.35 of its potential returns per unit of risk. In Win Development is currently generating about 0.41 per unit of risk. If you would invest 12,850 in Chenming Mold Industrial on November 28, 2024 and sell it today you would earn a total of 2,100 from holding Chenming Mold Industrial or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenming Mold Industrial vs. In Win Development
Performance |
| Timeline |
| Chenming Mold Industrial |
| In Win Development |
Chenming Mold and In Win Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenming Mold and In Win
The main advantage of trading using opposite Chenming Mold and In Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenming Mold position performs unexpectedly, In Win 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 In Win will offset losses from the drop in In Win's long position.| Chenming Mold vs. Clevo Co | Chenming Mold vs. Zinwell | Chenming Mold vs. Min Aik Technology | Chenming Mold vs. Promise Technology |
| In Win vs. Promise Technology | In Win vs. Chenming Mold Industrial | In Win vs. Associated Industries China | In Win vs. Min Aik Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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