Correlation Between Chongqing Road and Thinkingdom Media
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By analyzing existing cross correlation between Chongqing Road Bridge and Thinkingdom Media Group, you can compare the effects of market volatilities on Chongqing Road and Thinkingdom Media 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 Chongqing Road with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Thinkingdom Media.
Diversification Opportunities for Chongqing Road and Thinkingdom Media
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Thinkingdom is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and Chongqing Road 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 Chongqing Road Bridge are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Chongqing Road i.e., Chongqing Road and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Chongqing Road and Thinkingdom Media
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.31 times more return on investment than Thinkingdom Media. However, Chongqing Road is 1.31 times more volatile than Thinkingdom Media Group. It trades about 0.12 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.13 per unit of risk. If you would invest 559.00 in Chongqing Road Bridge on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Chongqing Road Bridge or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Thinkingdom Media Group
Performance |
| Timeline |
| Chongqing Road Bridge |
| Thinkingdom Media |
Chongqing Road and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Thinkingdom Media
The main advantage of trading using opposite Chongqing Road and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Chongqing Road vs. Jiahe Foods Industry | Chongqing Road vs. Xiwang Foodstuffs Co | Chongqing Road vs. Zhongshan Public Utilities | Chongqing Road vs. Jiajia Food Group |
| Thinkingdom Media vs. Gansu Jiu Steel | Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. Aba Chemicals Corp | Thinkingdom Media vs. Loctek Ergonomic 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 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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