Correlation Between Caihong Display and Uroica Mining
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By analyzing existing cross correlation between Caihong Display Devices and Uroica Mining Safety, you can compare the effects of market volatilities on Caihong Display and Uroica Mining 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 Caihong Display with a short position of Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Uroica Mining.
Diversification Opportunities for Caihong Display and Uroica Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caihong and Uroica is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Caihong Display i.e., Caihong Display and Uroica Mining go up and down completely randomly.
Pair Corralation between Caihong Display and Uroica Mining
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.16 times more return on investment than Uroica Mining. However, Caihong Display is 1.16 times more volatile than Uroica Mining Safety. It trades about 0.06 of its potential returns per unit of risk. Uroica Mining Safety is currently generating about -0.02 per unit of risk. If you would invest 855.00 in Caihong Display Devices on October 29, 2024 and sell it today you would earn a total of 27.00 from holding Caihong Display Devices or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Uroica Mining Safety
Performance |
| Timeline |
| Caihong Display Devices |
| Uroica Mining Safety |
Caihong Display and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Uroica Mining
The main advantage of trading using opposite Caihong Display and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Uroica Mining 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 Uroica Mining will offset losses from the drop in Uroica Mining's long position.| Caihong Display vs. Sinomach Automobile Co | Caihong Display vs. Shanghai V Test Semiconductor | Caihong Display vs. Xiangyang Automobile Bearing | Caihong Display vs. Ningbo Fangzheng Automobile |
| Uroica Mining vs. Cultural Investment Holdings | Uroica Mining vs. Postal Savings Bank | Uroica Mining vs. Dymatic Chemicals | Uroica Mining vs. Yingde Greatchem Chemicals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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