Correlation Between Chengdu Kanghua and Beijing HuaYuanYiTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Chengdu Kanghua and Beijing HuaYuanYiTong 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 Kanghua with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Beijing HuaYuanYiTong.
Diversification Opportunities for Chengdu Kanghua and Beijing HuaYuanYiTong
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Beijing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Chengdu Kanghua 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 Kanghua Biological are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to generate 0.57 times more return on investment than Beijing HuaYuanYiTong. However, Chengdu Kanghua Biological is 1.75 times less risky than Beijing HuaYuanYiTong. It trades about 0.06 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.3 per unit of risk. If you would invest 5,594 in Chengdu Kanghua Biological on September 25, 2024 and sell it today you would earn a total of 77.00 from holding Chengdu Kanghua Biological or generate 1.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Kanghua Biological vs. Beijing HuaYuanYiTong Thermal
Performance |
Timeline |
Chengdu Kanghua Biol |
Beijing HuaYuanYiTong |
Chengdu Kanghua and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Kanghua and Beijing HuaYuanYiTong
The main advantage of trading using opposite Chengdu Kanghua and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.Chengdu Kanghua vs. Industrial and Commercial | Chengdu Kanghua vs. Agricultural Bank of | Chengdu Kanghua vs. China Construction Bank | Chengdu Kanghua vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |