Correlation Between Chahua Modern and Der International
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By analyzing existing cross correlation between Chahua Modern Housewares and Der International Home, you can compare the effects of market volatilities on Chahua Modern and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Der International.
Diversification Opportunities for Chahua Modern and Der International
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Der is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Chahua Modern i.e., Chahua Modern and Der International go up and down completely randomly.
Pair Corralation between Chahua Modern and Der International
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.24 times more return on investment than Der International. However, Chahua Modern is 1.24 times more volatile than Der International Home. It trades about 0.1 of its potential returns per unit of risk. Der International Home is currently generating about 0.01 per unit of risk. If you would invest 863.00 in Chahua Modern Housewares on September 4, 2024 and sell it today you would earn a total of 1,343 from holding Chahua Modern Housewares or generate 155.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Der International Home
Performance |
| Timeline |
| Chahua Modern Housewares |
| Der International Home |
Chahua Modern and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Der International
The main advantage of trading using opposite Chahua Modern and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Chahua Modern vs. Zhejiang Yayi Metal | Chahua Modern vs. Bomin Electronics Co | Chahua Modern vs. Nantong Haixing Electronics | Chahua Modern vs. Leyard Optoelectronic |
| Der International vs. Agricultural Bank of | Der International vs. Industrial and Commercial | Der International vs. Bank of China | Der International vs. China Construction Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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