Correlation Between Chengdu Spaceon and Guangdong Cellwise
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Chengdu Spaceon and Guangdong Cellwise 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 Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Guangdong Cellwise.
Diversification Opportunities for Chengdu Spaceon and Guangdong Cellwise
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise 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 Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Guangdong Cellwise
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 2.32 times less return on investment than Guangdong Cellwise. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.64 times less risky than Guangdong Cellwise. It trades about 0.13 of its potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,127 in Guangdong Cellwise Microelectronics on September 25, 2024 and sell it today you would earn a total of 2,064 from holding Guangdong Cellwise Microelectronics or generate 66.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Spaceon Electronics vs. Guangdong Cellwise Microelectr
Performance |
Timeline |
Chengdu Spaceon Elec |
Guangdong Cellwise |
Chengdu Spaceon and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Spaceon and Guangdong Cellwise
The main advantage of trading using opposite Chengdu Spaceon and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise's long position.Chengdu Spaceon vs. Ningbo Fangzheng Automobile | Chengdu Spaceon vs. Dongfeng Automobile Co | Chengdu Spaceon vs. Dezhan HealthCare Co | Chengdu Spaceon vs. Songz Automobile Air |
Guangdong Cellwise vs. Threes Company Media | Guangdong Cellwise vs. Fujian Newland Computer | Guangdong Cellwise vs. Guangdong Shenglu Telecommunication | Guangdong Cellwise vs. Jiangxi Hengda Hi Tech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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