Correlation Between Chengdu B-ray and Huagong Tech
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By analyzing existing cross correlation between Chengdu B ray Media and Huagong Tech Co, you can compare the effects of market volatilities on Chengdu B-ray and Huagong Tech 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 Chengdu B-ray with a short position of Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Huagong Tech.
Diversification Opportunities for Chengdu B-ray and Huagong Tech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chengdu and Huagong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech and Chengdu B-ray 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 Chengdu B ray Media are associated (or correlated) with Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Chengdu B-ray i.e., Chengdu B-ray and Huagong Tech go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Huagong Tech
Assuming the 90 days trading horizon Chengdu B-ray is expected to generate 1.75 times less return on investment than Huagong Tech. In addition to that, Chengdu B-ray is 1.12 times more volatile than Huagong Tech Co. It trades about 0.03 of its total potential returns per unit of risk. Huagong Tech Co is currently generating about 0.05 per unit of volatility. If you would invest 3,045 in Huagong Tech Co on November 8, 2024 and sell it today you would earn a total of 913.00 from holding Huagong Tech Co or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Huagong Tech Co
Performance |
| Timeline |
| Chengdu B ray |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huagong Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chengdu B-ray and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Huagong Tech
The main advantage of trading using opposite Chengdu B-ray and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.The idea behind Chengdu B ray Media and Huagong Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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