Correlation Between China Building and Offcn Education
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By analyzing existing cross correlation between China Building Material and Offcn Education Technology, you can compare the effects of market volatilities on China Building and Offcn Education 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 China Building with a short position of Offcn Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Building and Offcn Education.
Diversification Opportunities for China Building and Offcn Education
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Offcn is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Building Material and Offcn Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offcn Education Tech and China Building 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 China Building Material are associated (or correlated) with Offcn Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offcn Education Tech has no effect on the direction of China Building i.e., China Building and Offcn Education go up and down completely randomly.
Pair Corralation between China Building and Offcn Education
Assuming the 90 days trading horizon China Building Material is expected to generate 0.44 times more return on investment than Offcn Education. However, China Building Material is 2.27 times less risky than Offcn Education. It trades about -0.48 of its potential returns per unit of risk. Offcn Education Technology is currently generating about -0.24 per unit of risk. If you would invest 812.00 in China Building Material on October 14, 2024 and sell it today you would lose (142.00) from holding China Building Material or give up 17.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Building Material vs. Offcn Education Technology
Performance |
| Timeline |
| China Building Material |
| Offcn Education Tech |
China Building and Offcn Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Building and Offcn Education
The main advantage of trading using opposite China Building and Offcn Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Building position performs unexpectedly, Offcn Education 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 Offcn Education will offset losses from the drop in Offcn Education's long position.| China Building vs. Qilu Bank Co | China Building vs. HeBei Jinniu Chemical | China Building vs. Unisplendour Corp | China Building vs. Longxing Chemical Stock |
| Offcn Education vs. Ningbo Tip Rubber | Offcn Education vs. Hangzhou Gaoxin Rubber | Offcn Education vs. Thunder Software Technology | Offcn Education vs. China Building Material |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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