Correlation Between China Asset and Guizhou Chanhen
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By analyzing existing cross correlation between China Asset Management and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on China Asset and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Guizhou Chanhen.
Diversification Opportunities for China Asset and Guizhou Chanhen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Guizhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of China Asset i.e., China Asset and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between China Asset and Guizhou Chanhen
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.48 times more return on investment than Guizhou Chanhen. However, China Asset Management is 2.09 times less risky than Guizhou Chanhen. It trades about 0.54 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.18 per unit of risk. If you would invest 351.00 in China Asset Management on October 24, 2024 and sell it today you would earn a total of 41.00 from holding China Asset Management or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| China Asset Management |
| Guizhou Chanhen Chemical |
China Asset and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Guizhou Chanhen
The main advantage of trading using opposite China Asset and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| China Asset vs. Aba Chemicals Corp | China Asset vs. Huizhou Speed Wireless | China Asset vs. Kingclean Electric Co | China Asset vs. COL Digital Publishing |
| Guizhou Chanhen vs. Ningbo Kangqiang Electronics | Guizhou Chanhen vs. Chengdu Spaceon Electronics | Guizhou Chanhen vs. Shijiazhuang Tonhe Electronics | Guizhou Chanhen vs. China Asset Management |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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