Correlation Between Chengdu Xingrong and Shenzhen RoadRover
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Shenzhen RoadRover Technology, you can compare the effects of market volatilities on Chengdu Xingrong and Shenzhen RoadRover 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 Chengdu Xingrong with a short position of Shenzhen RoadRover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Shenzhen RoadRover.
Diversification Opportunities for Chengdu Xingrong and Shenzhen RoadRover
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Shenzhen RoadRover Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen RoadRover and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Shenzhen RoadRover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen RoadRover has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Shenzhen RoadRover go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Shenzhen RoadRover
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.57 times more return on investment than Shenzhen RoadRover. However, Chengdu Xingrong Investment is 1.75 times less risky than Shenzhen RoadRover. It trades about -0.04 of its potential returns per unit of risk. Shenzhen RoadRover Technology is currently generating about -0.14 per unit of risk. If you would invest 764.00 in Chengdu Xingrong Investment on September 25, 2024 and sell it today you would lose (26.00) from holding Chengdu Xingrong Investment or give up 3.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Xingrong Investment vs. Shenzhen RoadRover Technology
Performance |
Timeline |
Chengdu Xingrong Inv |
Shenzhen RoadRover |
Chengdu Xingrong and Shenzhen RoadRover Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Xingrong and Shenzhen RoadRover
The main advantage of trading using opposite Chengdu Xingrong and Shenzhen RoadRover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Shenzhen RoadRover 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 Shenzhen RoadRover will offset losses from the drop in Shenzhen RoadRover's long position.Chengdu Xingrong vs. CSSC Offshore Marine | Chengdu Xingrong vs. Anji Foodstuff Co | Chengdu Xingrong vs. Yankershop Food Co | Chengdu Xingrong vs. Juewei Food Co |
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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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