Correlation Between Cinda Securities and Chongqing Sulian
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By analyzing existing cross correlation between Cinda Securities Co and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Cinda Securities and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Chongqing Sulian.
Diversification Opportunities for Cinda Securities and Chongqing Sulian
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Chongqing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Cinda Securities i.e., Cinda Securities and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Cinda Securities and Chongqing Sulian
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.82 times more return on investment than Chongqing Sulian. However, Cinda Securities Co is 1.21 times less risky than Chongqing Sulian. It trades about 0.04 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.03 per unit of risk. If you would invest 1,418 in Cinda Securities Co on September 27, 2024 and sell it today you would earn a total of 154.00 from holding Cinda Securities Co or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Cinda Securities |
| Chongqing Sulian Plastic |
Cinda Securities and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Chongqing Sulian
The main advantage of trading using opposite Cinda Securities and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian'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 |
| Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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