Correlation Between Cinda Securities and Long Yuan
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By analyzing existing cross correlation between Cinda Securities Co and Long Yuan Construction, you can compare the effects of market volatilities on Cinda Securities and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Long Yuan.
Diversification Opportunities for Cinda Securities and Long Yuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Long is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Cinda Securities i.e., Cinda Securities and Long Yuan go up and down completely randomly.
Pair Corralation between Cinda Securities and Long Yuan
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.21 times more return on investment than Long Yuan. However, Cinda Securities is 1.21 times more volatile than Long Yuan Construction. It trades about 0.04 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.01 per unit of risk. If you would invest 1,179 in Cinda Securities Co on September 12, 2024 and sell it today you would earn a total of 381.00 from holding Cinda Securities Co or generate 32.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.17% |
| Values | Daily Returns |
Cinda Securities Co vs. Long Yuan Construction
Performance |
| Timeline |
| Cinda Securities |
| Long Yuan Construction |
Cinda Securities and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Long Yuan
The main advantage of trading using opposite Cinda Securities and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China Mobile Limited | Cinda Securities vs. Industrial and Commercial |
| Long Yuan vs. Saurer Intelligent Technology | Long Yuan vs. Tianshui Huatian Technology | Long Yuan vs. HUAQIN TECHNOLOGY LTD | Long Yuan vs. Northking Information Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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