Correlation Between Chahua Modern and Marssenger Kitchenware
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By analyzing existing cross correlation between Chahua Modern Housewares and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Chahua Modern and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Marssenger Kitchenware.
Diversification Opportunities for Chahua Modern and Marssenger Kitchenware
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chahua and Marssenger is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Chahua Modern i.e., Chahua Modern and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Chahua Modern and Marssenger Kitchenware
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.41 times more return on investment than Marssenger Kitchenware. However, Chahua Modern is 1.41 times more volatile than Marssenger Kitchenware Co. It trades about 0.18 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.07 per unit of risk. If you would invest 1,871 in Chahua Modern Housewares on August 30, 2024 and sell it today you would earn a total of 329.00 from holding Chahua Modern Housewares or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Marssenger Kitchenware |
Chahua Modern and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Marssenger Kitchenware
The main advantage of trading using opposite Chahua Modern and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Chahua Modern vs. Ming Yang Smart | Chahua Modern vs. 159005 | Chahua Modern vs. 516220 | Chahua Modern vs. Shandong Ruifeng Chemical |
| Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. China Construction Bank | Marssenger Kitchenware vs. Bank of China |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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