Correlation Between Hygon Information and Chengdu Kanghua
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By analyzing existing cross correlation between Hygon Information Technology and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Hygon Information and Chengdu Kanghua 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 Hygon Information with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Chengdu Kanghua.
Diversification Opportunities for Hygon Information and Chengdu Kanghua
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Chengdu is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Hygon Information i.e., Hygon Information and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Hygon Information and Chengdu Kanghua
Assuming the 90 days trading horizon Hygon Information Technology is expected to under-perform the Chengdu Kanghua. In addition to that, Hygon Information is 2.53 times more volatile than Chengdu Kanghua Biological. It trades about -0.07 of its total potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.03 per unit of volatility. If you would invest 5,178 in Chengdu Kanghua Biological on November 4, 2024 and sell it today you would lose (52.00) from holding Chengdu Kanghua Biological or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Hygon Information |
| Chengdu Kanghua Biol |
Hygon Information and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Chengdu Kanghua
The main advantage of trading using opposite Hygon Information and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Hygon Information vs. AUPU Home Style | Hygon Information vs. Shandong Homey Aquatic | Hygon Information vs. Heilongjiang Transport Development | Hygon Information vs. Xiamen Goldenhome Co |
| Chengdu Kanghua vs. Baoding Dongli Machinery | Chengdu Kanghua vs. Marssenger Kitchenware Co | Chengdu Kanghua vs. Shantui Construction Machinery | Chengdu Kanghua vs. Yindu Kitchen Equipment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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