Correlation Between Bright Real and Chengdu B
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bright Real Estate and Chengdu B ray Media, you can compare the effects of market volatilities on Bright Real and Chengdu B 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 Bright Real with a short position of Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Real and Chengdu B.
Diversification Opportunities for Bright Real and Chengdu B
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bright and Chengdu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bright Real Estate and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray and Bright Real 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 Bright Real Estate are associated (or correlated) with Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Bright Real i.e., Bright Real and Chengdu B go up and down completely randomly.
Pair Corralation between Bright Real and Chengdu B
Assuming the 90 days trading horizon Bright Real Estate is expected to generate 1.18 times more return on investment than Chengdu B. However, Bright Real is 1.18 times more volatile than Chengdu B ray Media. It trades about 0.1 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.0 per unit of risk. If you would invest 219.00 in Bright Real Estate on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Bright Real Estate or generate 96.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bright Real Estate vs. Chengdu B ray Media
Performance |
| Timeline |
| Bright Real Estate |
| Chengdu B ray |
Bright Real and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Real and Chengdu B
The main advantage of trading using opposite Bright Real and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Real position performs unexpectedly, Chengdu B 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 B will offset losses from the drop in Chengdu B's long position.| Bright Real vs. Chengdu B ray Media | Bright Real vs. Shuhua Sports Co | Bright Real vs. Shanghai Xinhua Media | Bright Real vs. Beijing Kaiwen Education |
| Chengdu B vs. Aofu Environmental Technology | Chengdu B vs. GreenTech Environmental Co | Chengdu B vs. Cofoe Medical Technology | Chengdu B vs. Cowealth Medical China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |