Correlation Between Cinda Securities and GuoChuang Software
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By analyzing existing cross correlation between Cinda Securities Co and GuoChuang Software Co, you can compare the effects of market volatilities on Cinda Securities and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and GuoChuang Software.
Diversification Opportunities for Cinda Securities and GuoChuang Software
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cinda and GuoChuang is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of Cinda Securities i.e., Cinda Securities and GuoChuang Software go up and down completely randomly.
Pair Corralation between Cinda Securities and GuoChuang Software
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.72 times more return on investment than GuoChuang Software. However, Cinda Securities Co is 1.4 times less risky than GuoChuang Software. It trades about -0.27 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about -0.44 per unit of risk. If you would invest 1,596 in Cinda Securities Co on October 12, 2024 and sell it today you would lose (220.00) from holding Cinda Securities Co or give up 13.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. GuoChuang Software Co
Performance |
| Timeline |
| Cinda Securities |
| GuoChuang Software |
Cinda Securities and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and GuoChuang Software
The main advantage of trading using opposite Cinda Securities and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software's long position.| Cinda Securities vs. Glodon Software Co | Cinda Securities vs. Jiangyin Jianghua Microelectronics | Cinda Securities vs. Fuzhou Rockchip Electronics | Cinda Securities vs. Weihai Honglin Electronic |
| GuoChuang Software vs. China Life Insurance | GuoChuang Software vs. Cinda Securities Co | GuoChuang Software vs. Piotech Inc A | GuoChuang Software 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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