Correlation Between Chengdu B and Jiangsu Yanghe
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By analyzing existing cross correlation between Chengdu B ray Media and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Chengdu B and Jiangsu Yanghe 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 with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Jiangsu Yanghe.
Diversification Opportunities for Chengdu B and Jiangsu Yanghe
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengdu and Jiangsu is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Chengdu B 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Chengdu B i.e., Chengdu B and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Chengdu B and Jiangsu Yanghe
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.75 times more return on investment than Jiangsu Yanghe. However, Chengdu B is 1.75 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.07 per unit of risk. If you would invest 585.00 in Chengdu B ray Media on October 29, 2024 and sell it today you would lose (129.00) from holding Chengdu B ray Media or give up 22.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Chengdu B ray |
| Jiangsu Yanghe Brewery |
Chengdu B and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Jiangsu Yanghe
The main advantage of trading using opposite Chengdu B and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Chengdu B vs. Bus Online Co | Chengdu B vs. Holitech Technology Co | Chengdu B vs. Gome Telecom Equipment | Chengdu B vs. Cultural Investment Holdings |
| Jiangsu Yanghe vs. Haima Automobile Group | Jiangsu Yanghe vs. Wintao Communications Co | Jiangsu Yanghe vs. Hunan Mendale Hometextile | Jiangsu Yanghe vs. Beijing Bewinner Communications |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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