Correlation Between Bank of Chengdu and Hunan Nanling
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By analyzing existing cross correlation between Bank of Chengdu and Hunan Nanling Industrial, you can compare the effects of market volatilities on Bank of Chengdu and Hunan Nanling 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 Bank of Chengdu with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Chengdu and Hunan Nanling.
Diversification Opportunities for Bank of Chengdu and Hunan Nanling
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Hunan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Chengdu and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial and Bank of Chengdu 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 Bank of Chengdu are associated (or correlated) with Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Bank of Chengdu i.e., Bank of Chengdu and Hunan Nanling go up and down completely randomly.
Pair Corralation between Bank of Chengdu and Hunan Nanling
Assuming the 90 days trading horizon Bank of Chengdu is expected to generate 0.76 times more return on investment than Hunan Nanling. However, Bank of Chengdu is 1.32 times less risky than Hunan Nanling. It trades about 0.02 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.03 per unit of risk. If you would invest 1,593 in Bank of Chengdu on October 25, 2024 and sell it today you would earn a total of 46.00 from holding Bank of Chengdu or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Chengdu vs. Hunan Nanling Industrial
Performance |
| Timeline |
| Bank of Chengdu |
| Hunan Nanling Industrial |
Bank of Chengdu and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Chengdu and Hunan Nanling
The main advantage of trading using opposite Bank of Chengdu and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Chengdu position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Bank of Chengdu vs. Suzhou Mingzhi Technology | Bank of Chengdu vs. Jilin Jlu Communication | Bank of Chengdu vs. China Eastern Airlines | Bank of Chengdu vs. XiaMen HongXin Electron tech |
| Hunan Nanling vs. Zijin Mining Group | Hunan Nanling vs. Wanhua Chemical Group | Hunan Nanling vs. Baoshan Iron Steel | Hunan Nanling vs. Rongsheng Petrochemical 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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