Correlation Between Chengdu B and Threes Company
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By analyzing existing cross correlation between Chengdu B ray Media and Threes Company Media, you can compare the effects of market volatilities on Chengdu B and Threes Company 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 Threes Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Threes Company.
Diversification Opportunities for Chengdu B and Threes Company
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Threes is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Threes Company Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Threes Company 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 Threes Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Threes Company has no effect on the direction of Chengdu B i.e., Chengdu B and Threes Company go up and down completely randomly.
Pair Corralation between Chengdu B and Threes Company
Assuming the 90 days trading horizon Chengdu B is expected to generate 1.07 times less return on investment than Threes Company. But when comparing it to its historical volatility, Chengdu B ray Media is 1.24 times less risky than Threes Company. It trades about 0.19 of its potential returns per unit of risk. Threes Company Media is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,480 in Threes Company Media on September 2, 2024 and sell it today you would earn a total of 1,014 from holding Threes Company Media or generate 40.89% 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. Threes Company Media
Performance |
| Timeline |
| Chengdu B ray |
| Threes Company |
Chengdu B and Threes Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Threes Company
The main advantage of trading using opposite Chengdu B and Threes Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Threes Company 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 Threes Company will offset losses from the drop in Threes Company'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 |
| Threes Company vs. Ming Yang Smart | Threes Company vs. 159681 | Threes Company vs. 159005 | Threes Company vs. Loctek Ergonomic Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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