Correlation Between Henan Lantian and CSG Holding
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By analyzing existing cross correlation between Henan Lantian Gas and CSG Holding Co, you can compare the effects of market volatilities on Henan Lantian and CSG Holding 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 Henan Lantian with a short position of CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and CSG Holding.
Diversification Opportunities for Henan Lantian and CSG Holding
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and CSG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Henan Lantian i.e., Henan Lantian and CSG Holding go up and down completely randomly.
Pair Corralation between Henan Lantian and CSG Holding
Assuming the 90 days trading horizon Henan Lantian Gas is expected to generate 0.47 times more return on investment than CSG Holding. However, Henan Lantian Gas is 2.11 times less risky than CSG Holding. It trades about -0.12 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.28 per unit of risk. If you would invest 1,136 in Henan Lantian Gas on November 3, 2024 and sell it today you would lose (29.00) from holding Henan Lantian Gas or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. CSG Holding Co
Performance |
| Timeline |
| Henan Lantian Gas |
| CSG Holding |
Henan Lantian and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and CSG Holding
The main advantage of trading using opposite Henan Lantian and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Henan Lantian vs. Wintao Communications Co | Henan Lantian vs. Tongyu Communication | Henan Lantian vs. Beijing Bewinner Communications | Henan Lantian vs. Bank of Communications |
| CSG Holding vs. Jinhe Biotechnology Co | CSG Holding vs. Tinavi Medical Technologies | CSG Holding vs. Xiangyu Medical Co | CSG Holding vs. Sichuan Hebang Biotechnology |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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