Correlation Between Cinda Securities and Hengli Industrial
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By analyzing existing cross correlation between Cinda Securities Co and Hengli Industrial Development, you can compare the effects of market volatilities on Cinda Securities and Hengli Industrial 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 Cinda Securities with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Hengli Industrial.
Diversification Opportunities for Cinda Securities and Hengli Industrial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cinda and Hengli is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Cinda Securities i.e., Cinda Securities and Hengli Industrial go up and down completely randomly.
Pair Corralation between Cinda Securities and Hengli Industrial
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.97 times more return on investment than Hengli Industrial. However, Cinda Securities Co is 1.03 times less risky than Hengli Industrial. It trades about 0.04 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 1,179 in Cinda Securities Co on September 28, 2024 and sell it today you would earn a total of 432.00 from holding Cinda Securities Co or generate 36.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.48% |
| Values | Daily Returns |
Cinda Securities Co vs. Hengli Industrial Development
Performance |
| Timeline |
| Cinda Securities |
| Hengli Industrial |
Cinda Securities and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Hengli Industrial
The main advantage of trading using opposite Cinda Securities and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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