Correlation Between Chahua Modern and Shanghai CEO
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chahua Modern Housewares and Shanghai CEO Environmental, you can compare the effects of market volatilities on Chahua Modern and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Shanghai CEO.
Diversification Opportunities for Chahua Modern and Shanghai CEO
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chahua and Shanghai is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Chahua Modern i.e., Chahua Modern and Shanghai CEO go up and down completely randomly.
Pair Corralation between Chahua Modern and Shanghai CEO
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.27 times more return on investment than Shanghai CEO. However, Chahua Modern is 1.27 times more volatile than Shanghai CEO Environmental. It trades about 0.04 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.03 per unit of risk. If you would invest 1,775 in Chahua Modern Housewares on October 30, 2024 and sell it today you would earn a total of 511.00 from holding Chahua Modern Housewares or generate 28.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Chahua Modern Housewares |
| Shanghai CEO Environ |
Chahua Modern and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Shanghai CEO
The main advantage of trading using opposite Chahua Modern and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Chahua Modern vs. Shandong Longquan Pipeline | Chahua Modern vs. Invengo Information Technology | Chahua Modern vs. Longmaster Information Tech | Chahua Modern vs. Guangzhou Ruoyuchen Information |
| Shanghai CEO vs. China Petroleum Chemical | Shanghai CEO vs. PetroChina Co Ltd | Shanghai CEO vs. China State Construction | Shanghai CEO vs. China Railway Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |