Correlation Between Chengdu B and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu B ray Media and China State Construction, you can compare the effects of market volatilities on Chengdu B and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and China State.
Diversification Opportunities for Chengdu B and China State
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Chengdu B i.e., Chengdu B and China State go up and down completely randomly.
Pair Corralation between Chengdu B and China State
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.38 times more return on investment than China State. However, Chengdu B is 1.38 times more volatile than China State Construction. It trades about 0.17 of its potential returns per unit of risk. China State Construction is currently generating about -0.06 per unit of risk. If you would invest 454.00 in Chengdu B ray Media on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Chengdu B ray Media or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. China State Construction
Performance |
| Timeline |
| Chengdu B ray |
| China State Construction |
Chengdu B and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and China State
The main advantage of trading using opposite Chengdu B and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Chengdu B vs. Kunshan Guoli Electronic | Chengdu B vs. Chison Medical Technologies | Chengdu B vs. Xian International Medical | Chengdu B vs. Shenzhen Glory Medical |
| China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology | China State vs. 516220 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |