Correlation Between Cinda Securities and ChengDu Hi
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By analyzing existing cross correlation between Cinda Securities Co and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Cinda Securities and ChengDu Hi 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 ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and ChengDu Hi.
Diversification Opportunities for Cinda Securities and ChengDu Hi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and ChengDu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech 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 ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Cinda Securities i.e., Cinda Securities and ChengDu Hi go up and down completely randomly.
Pair Corralation between Cinda Securities and ChengDu Hi
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.69 times more return on investment than ChengDu Hi. However, Cinda Securities Co is 1.44 times less risky than ChengDu Hi. It trades about -0.04 of its potential returns per unit of risk. ChengDu Hi Tech Development is currently generating about -0.11 per unit of risk. If you would invest 1,674 in Cinda Securities Co on September 14, 2024 and sell it today you would lose (38.00) from holding Cinda Securities Co or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| Cinda Securities |
| ChengDu Hi Tech |
Cinda Securities and ChengDu Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and ChengDu Hi
The main advantage of trading using opposite Cinda Securities and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, ChengDu Hi 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 Hi will offset losses from the drop in ChengDu Hi's long position.| Cinda Securities vs. Chison Medical Technologies | Cinda Securities vs. Eastern Air Logistics | Cinda Securities vs. Hangzhou Gisway Information | Cinda Securities vs. Air China Ltd |
| ChengDu Hi vs. China Life Insurance | ChengDu Hi vs. Cinda Securities Co | ChengDu Hi vs. Piotech Inc A | ChengDu Hi 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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