Correlation Between Chahua Modern and Zhongshan Public
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By analyzing existing cross correlation between Chahua Modern Housewares and Zhongshan Public Utilities, you can compare the effects of market volatilities on Chahua Modern and Zhongshan Public 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 Chahua Modern with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Zhongshan Public.
Diversification Opportunities for Chahua Modern and Zhongshan Public
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chahua and Zhongshan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Chahua Modern i.e., Chahua Modern and Zhongshan Public go up and down completely randomly.
Pair Corralation between Chahua Modern and Zhongshan Public
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 2.3 times more return on investment than Zhongshan Public. However, Chahua Modern is 2.3 times more volatile than Zhongshan Public Utilities. It trades about 0.08 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.05 per unit of risk. If you would invest 829.00 in Chahua Modern Housewares on October 26, 2024 and sell it today you would earn a total of 1,371 from holding Chahua Modern Housewares or generate 165.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Chahua Modern Housewares |
| Zhongshan Public Uti |
Chahua Modern and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Zhongshan Public
The main advantage of trading using opposite Chahua Modern and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Chahua Modern vs. Bus Online Co | Chahua Modern vs. Holitech Technology Co | Chahua Modern vs. Gome Telecom Equipment | Chahua Modern vs. Cultural Investment Holdings |
| Zhongshan Public vs. Jiangsu Xinri E Vehicle | Zhongshan Public vs. CIMC Vehicles Co | Zhongshan Public vs. Zhejiang Qianjiang Motorcycle | Zhongshan Public vs. Nuode Investment 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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