Correlation Between Chengdu B and Gem Year
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By analyzing existing cross correlation between Chengdu B ray Media and Gem Year Industrial Co, you can compare the effects of market volatilities on Chengdu B and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Gem Year.
Diversification Opportunities for Chengdu B and Gem Year
Almost no diversification
The 3 months correlation between Chengdu and Gem is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Chengdu B i.e., Chengdu B and Gem Year go up and down completely randomly.
Pair Corralation between Chengdu B and Gem Year
Assuming the 90 days trading horizon Chengdu B is expected to generate 1.15 times less return on investment than Gem Year. But when comparing it to its historical volatility, Chengdu B ray Media is 1.02 times less risky than Gem Year. It trades about 0.04 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Gem Year Industrial Co on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Gem Year Industrial Co or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Gem Year Industrial Co
Performance |
| Timeline |
| Chengdu B ray |
| Gem Year Industrial |
Chengdu B and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Gem Year
The main advantage of trading using opposite Chengdu B and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Chengdu B vs. Gansu Jiu Steel | Chengdu B vs. Ming Yang Smart | Chengdu B vs. Aba Chemicals Corp | Chengdu B vs. Loctek Ergonomic Technology |
| Gem Year vs. Cultural Investment Holdings | Gem Year vs. Gome Telecom Equipment | Gem Year vs. Bus Online Co | Gem Year vs. Holitech Technology Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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