Correlation Between Chengdu Xingrong and Namchow Food
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Namchow Food Group, you can compare the effects of market volatilities on Chengdu Xingrong and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Namchow Food.
Diversification Opportunities for Chengdu Xingrong and Namchow Food
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Namchow is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Namchow Food go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Namchow Food
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.57 times more return on investment than Namchow Food. However, Chengdu Xingrong Investment is 1.76 times less risky than Namchow Food. It trades about -0.02 of its potential returns per unit of risk. Namchow Food Group is currently generating about -0.19 per unit of risk. If you would invest 720.00 in Chengdu Xingrong Investment on October 10, 2024 and sell it today you would lose (6.00) from holding Chengdu Xingrong Investment or give up 0.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Xingrong Investment vs. Namchow Food Group
Performance |
Timeline |
Chengdu Xingrong Inv |
Namchow Food Group |
Chengdu Xingrong and Namchow Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Xingrong and Namchow Food
The main advantage of trading using opposite Chengdu Xingrong and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.Chengdu Xingrong vs. Unisplendour Corp | Chengdu Xingrong vs. Fujian Boss Software | Chengdu Xingrong vs. Industrial Bank Co | Chengdu Xingrong vs. Qilu Bank Co |
Namchow Food vs. Guilin Seamild Foods | Namchow Food vs. Henan Shuanghui Investment | Namchow Food vs. Tieling Newcity Investment | Namchow Food vs. Zhongrun Resources Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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