Correlation Between Chengdu Spaceon and Shanghai Yaoji
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Chengdu Spaceon and Shanghai Yaoji 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 Spaceon with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Shanghai Yaoji.
Diversification Opportunities for Chengdu Spaceon and Shanghai Yaoji
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Chengdu Spaceon 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 Spaceon Electronics are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Shanghai Yaoji
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 1.47 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.37 times less risky than Shanghai Yaoji. It trades about 0.19 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,047 in Shanghai Yaoji Playing on September 12, 2024 and sell it today you would earn a total of 1,264 from holding Shanghai Yaoji Playing or generate 61.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Spaceon Electronics vs. Shanghai Yaoji Playing
Performance |
Timeline |
Chengdu Spaceon Elec |
Shanghai Yaoji Playing |
Chengdu Spaceon and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Spaceon and Shanghai Yaoji
The main advantage of trading using opposite Chengdu Spaceon and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji's long position.Chengdu Spaceon vs. Gansu Jiu Steel | Chengdu Spaceon vs. Shandong Mining Machinery | Chengdu Spaceon vs. Aba Chemicals Corp | Chengdu Spaceon vs. BlueFocus Communication Group |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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