Correlation Between Chengdu B and DO Home
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By analyzing existing cross correlation between Chengdu B ray Media and DO Home Collection, you can compare the effects of market volatilities on Chengdu B and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and DO Home.
Diversification Opportunities for Chengdu B and DO Home
Poor diversification
The 3 months correlation between Chengdu and 002798 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Chengdu B i.e., Chengdu B and DO Home go up and down completely randomly.
Pair Corralation between Chengdu B and DO Home
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 0.98 times more return on investment than DO Home. However, Chengdu B ray Media is 1.02 times less risky than DO Home. It trades about 0.0 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.04 per unit of risk. If you would invest 574.00 in Chengdu B ray Media on October 27, 2024 and sell it today you would lose (118.00) from holding Chengdu B ray Media or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. DO Home Collection
Performance |
| Timeline |
| Chengdu B ray |
| DO Home Collection |
Chengdu B and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and DO Home
The main advantage of trading using opposite Chengdu B and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Chengdu B vs. Sanbo Hospital Management | Chengdu B vs. Jiahe Foods Industry | Chengdu B vs. Eastern Air Logistics | Chengdu B vs. Shanghai Ziyan Foods |
| DO Home vs. Allgens Medical Technology | DO Home vs. Cicc Fund Management | DO Home vs. JCHX Mining Management | DO Home vs. Chengdu Spaceon Electronics |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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