Correlation Between China National and Chenzhou Jingui
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By analyzing existing cross correlation between China National Software and Chenzhou Jingui Silver, you can compare the effects of market volatilities on China National 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 National with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Chenzhou Jingui.
Diversification Opportunities for China National and Chenzhou Jingui
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Chenzhou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China National Software 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 National 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 National Software 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 National i.e., China National and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between China National and Chenzhou Jingui
Assuming the 90 days trading horizon China National Software is expected to under-perform the Chenzhou Jingui. In addition to that, China National is 1.16 times more volatile than Chenzhou Jingui Silver. It trades about 0.0 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.02 per unit of volatility. If you would invest 327.00 in Chenzhou Jingui Silver on October 29, 2024 and sell it today you would earn a total of 28.00 from holding Chenzhou Jingui Silver or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| China National Software |
| Chenzhou Jingui Silver |
China National and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Chenzhou Jingui
The main advantage of trading using opposite China National and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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 National vs. Bank of China | China National vs. Kweichow Moutai Co | China National vs. PetroChina Co Ltd | China National vs. Bank of Communications |
| Chenzhou Jingui vs. Hangzhou Guotai Environmental | Chenzhou Jingui vs. City Development Environment | Chenzhou Jingui vs. Elite Color Environmental | Chenzhou Jingui vs. Changjiang Jinggong Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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