Correlation Between Chahua Modern and China World
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By analyzing existing cross correlation between Chahua Modern Housewares and China World Trade, you can compare the effects of market volatilities on Chahua Modern and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and China World.
Diversification Opportunities for Chahua Modern and China World
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chahua and China is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Chahua Modern i.e., Chahua Modern and China World go up and down completely randomly.
Pair Corralation between Chahua Modern and China World
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.9 times more return on investment than China World. However, Chahua Modern is 1.9 times more volatile than China World Trade. It trades about 0.12 of its potential returns per unit of risk. China World Trade is currently generating about 0.21 per unit of risk. If you would invest 2,082 in Chahua Modern Housewares on September 29, 2024 and sell it today you would earn a total of 157.00 from holding Chahua Modern Housewares or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. China World Trade
Performance |
| Timeline |
| Chahua Modern Housewares |
| China World Trade |
Chahua Modern and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and China World
The main advantage of trading using opposite Chahua Modern and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Chahua Modern vs. China Petroleum Chemical | Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. China State Construction | Chahua Modern vs. China Railway Group |
| China World vs. Guosheng Financial Holding | China World vs. Peoples Insurance of | China World vs. Sinofibers Technology Co | China World vs. Unisplendour Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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