Correlation Between Lushang Property and Chengdu Kanghua
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By analyzing existing cross correlation between Lushang Property Co and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Lushang Property and Chengdu Kanghua 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 Lushang Property with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Chengdu Kanghua.
Diversification Opportunities for Lushang Property and Chengdu Kanghua
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lushang and Chengdu is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Lushang Property 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 Lushang Property Co are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Lushang Property i.e., Lushang Property and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Lushang Property and Chengdu Kanghua
Assuming the 90 days trading horizon Lushang Property Co is expected to generate 0.76 times more return on investment than Chengdu Kanghua. However, Lushang Property Co is 1.31 times less risky than Chengdu Kanghua. It trades about 0.06 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.02 per unit of risk. If you would invest 607.00 in Lushang Property Co on October 26, 2024 and sell it today you would earn a total of 98.00 from holding Lushang Property Co or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Lushang Property Co vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Lushang Property |
| Chengdu Kanghua Biol |
Lushang Property and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Chengdu Kanghua
The main advantage of trading using opposite Lushang Property and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Lushang Property vs. AVIC Fund Management | Lushang Property vs. Harvest Fund Management | Lushang Property vs. Jiujiang Shanshui Technology | Lushang Property vs. Cicc Fund Management |
| Chengdu Kanghua vs. ROPEOK Technology Group | Chengdu Kanghua vs. Shantou Wanshun Package | Chengdu Kanghua vs. Holitech Technology Co | Chengdu Kanghua vs. Shanghai Ziyan Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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