Correlation Between Gem Year and Chengdu Spaceon
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By analyzing existing cross correlation between Gem Year Industrial Co and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Gem Year and Chengdu Spaceon 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 Gem Year with a short position of Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Chengdu Spaceon.
Diversification Opportunities for Gem Year and Chengdu Spaceon
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Chengdu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Gem Year i.e., Gem Year and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Gem Year and Chengdu Spaceon
Assuming the 90 days trading horizon Gem Year is expected to generate 1.66 times less return on investment than Chengdu Spaceon. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.36 times less risky than Chengdu Spaceon. It trades about 0.08 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,727 in Chengdu Spaceon Electronics on September 14, 2024 and sell it today you would earn a total of 85.00 from holding Chengdu Spaceon Electronics or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Gem Year Industrial |
| Chengdu Spaceon Elec |
Gem Year and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Chengdu Spaceon
The main advantage of trading using opposite Gem Year and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Gem Year vs. Sinosteel Luonai Materials | Gem Year vs. Tianjin Pengling Rubber | Gem Year vs. Guangzhou Tinci Materials | Gem Year vs. Ningbo Tip Rubber |
| Chengdu Spaceon vs. Gem Year Industrial Co | Chengdu Spaceon vs. Huafa Industrial Co | Chengdu Spaceon vs. Jiangxi Selon Industrial | Chengdu Spaceon vs. Tongyu Communication |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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