Correlation Between Chahua Modern and Zhejiang Qianjiang
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By analyzing existing cross correlation between Chahua Modern Housewares and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Chahua Modern and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Zhejiang Qianjiang.
Diversification Opportunities for Chahua Modern and Zhejiang Qianjiang
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chahua and Zhejiang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Chahua Modern i.e., Chahua Modern and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Chahua Modern and Zhejiang Qianjiang
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.3 times more return on investment than Zhejiang Qianjiang. However, Chahua Modern is 1.3 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.02 per unit of risk. If you would invest 1,314 in Chahua Modern Housewares on November 28, 2024 and sell it today you would earn a total of 927.00 from holding Chahua Modern Housewares or generate 70.55% 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. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Chahua Modern Housewares |
| Zhejiang Qianjiang |
Chahua Modern and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Zhejiang Qianjiang
The main advantage of trading using opposite Chahua Modern and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Chahua Modern vs. Hunan Investment Group | Chahua Modern vs. Henan Shuanghui Investment | Chahua Modern vs. Nuode Investment Co | Chahua Modern vs. Harbin Hatou Investment |
| Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. China Construction Bank | Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Agricultural Bank of |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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