Correlation Between China Asset and Chenzhou Jingui
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By analyzing existing cross correlation between China Asset Management and Chenzhou Jingui Silver, you can compare the effects of market volatilities on China Asset and Chenzhou Jingui 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 China Asset with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Chenzhou Jingui.
Diversification Opportunities for China Asset and Chenzhou Jingui
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Chenzhou is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver and China Asset 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 China Asset Management are associated (or correlated) with Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of China Asset i.e., China Asset and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between China Asset and Chenzhou Jingui
Assuming the 90 days trading horizon China Asset is expected to generate 8.67 times less return on investment than Chenzhou Jingui. But when comparing it to its historical volatility, China Asset Management is 4.01 times less risky than Chenzhou Jingui. It trades about 0.05 of its potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Chenzhou Jingui Silver on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Chenzhou Jingui Silver or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| China Asset Management |
| Chenzhou Jingui Silver |
China Asset and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Chenzhou Jingui
The main advantage of trading using opposite China Asset and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Chenzhou Jingui vs. Hubei Dinglong Chemical | Chenzhou Jingui vs. Ningxia Younglight Chemicals | Chenzhou Jingui vs. Shaanxi Meineng Clean | Chenzhou Jingui vs. Shandong Polymer Biochemicals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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