Correlation Between 360 Security and Chengdu B
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By analyzing existing cross correlation between 360 Security Technology and Chengdu B ray Media, you can compare the effects of market volatilities on 360 Security and Chengdu B 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 360 Security with a short position of Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and Chengdu B.
Diversification Opportunities for 360 Security and Chengdu B
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 360 and Chengdu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray and 360 Security 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 360 Security Technology are associated (or correlated) with Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of 360 Security i.e., 360 Security and Chengdu B go up and down completely randomly.
Pair Corralation between 360 Security and Chengdu B
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 0.91 times more return on investment than Chengdu B. However, 360 Security Technology is 1.1 times less risky than Chengdu B. It trades about -0.18 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.2 per unit of risk. If you would invest 1,114 in 360 Security Technology on October 25, 2024 and sell it today you would lose (115.00) from holding 360 Security Technology or give up 10.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Security Technology vs. Chengdu B ray Media
Performance |
| Timeline |
| 360 Security Technology |
| Chengdu B ray |
360 Security and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Security and Chengdu B
The main advantage of trading using opposite 360 Security and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security position performs unexpectedly, Chengdu B 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 B will offset losses from the drop in Chengdu B's long position.| 360 Security vs. Kweichow Moutai Co | 360 Security vs. NAURA Technology Group | 360 Security vs. APT Medical | 360 Security vs. BYD Co Ltd |
| Chengdu B vs. Industrial and Commercial | Chengdu B vs. Agricultural Bank of | Chengdu B vs. China Construction Bank | Chengdu B vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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