Correlation Between Chahua Modern and Do Fluoride
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By analyzing existing cross correlation between Chahua Modern Housewares and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Chahua Modern and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Do Fluoride.
Diversification Opportunities for Chahua Modern and Do Fluoride
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chahua and 002407 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Chahua Modern i.e., Chahua Modern and Do Fluoride go up and down completely randomly.
Pair Corralation between Chahua Modern and Do Fluoride
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.48 times more return on investment than Do Fluoride. However, Chahua Modern is 1.48 times more volatile than Do Fluoride Chemicals Co. It trades about 0.04 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.03 per unit of risk. If you would invest 1,763 in Chahua Modern Housewares on October 12, 2024 and sell it today you would earn a total of 325.00 from holding Chahua Modern Housewares or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Do Fluoride Chemicals |
Chahua Modern and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Do Fluoride
The main advantage of trading using opposite Chahua Modern and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Chahua Modern vs. Ye Chiu Metal | Chahua Modern vs. Northern United Publishing | Chahua Modern vs. Dalian Thermal Power | Chahua Modern vs. Southern PublishingMedia Co |
| Do Fluoride vs. Anhui Deli Household | Do Fluoride vs. AVIC Fund Management | Do Fluoride vs. Zhejiang Publishing Media | Do Fluoride vs. Chahua Modern Housewares |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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