Correlation Between Chongqing VDL and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing VDL Electronics and Shuhua Sports Co, you can compare the effects of market volatilities on Chongqing VDL and Shuhua Sports 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 Chongqing VDL with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing VDL and Shuhua Sports.
Diversification Opportunities for Chongqing VDL and Shuhua Sports
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Shuhua is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing VDL Electronics and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Chongqing VDL 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 Chongqing VDL Electronics are associated (or correlated) with Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Chongqing VDL i.e., Chongqing VDL and Shuhua Sports go up and down completely randomly.
Pair Corralation between Chongqing VDL and Shuhua Sports
Assuming the 90 days trading horizon Chongqing VDL Electronics is expected to generate 1.06 times more return on investment than Shuhua Sports. However, Chongqing VDL is 1.06 times more volatile than Shuhua Sports Co. It trades about 0.07 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.02 per unit of risk. If you would invest 4,885 in Chongqing VDL Electronics on October 5, 2024 and sell it today you would earn a total of 215.00 from holding Chongqing VDL Electronics or generate 4.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing VDL Electronics vs. Shuhua Sports Co
Performance |
Timeline |
Chongqing VDL Electronics |
Shuhua Sports |
Chongqing VDL and Shuhua Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing VDL and Shuhua Sports
The main advantage of trading using opposite Chongqing VDL and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing VDL position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.Chongqing VDL vs. Panda Financial Holding | Chongqing VDL vs. Cicc Fund Management | Chongqing VDL vs. AVIC Fund Management | Chongqing VDL vs. Qilu Bank Co |
Shuhua Sports vs. Holitech Technology Co | Shuhua Sports vs. Zotye Automobile Co | Shuhua Sports vs. Bus Online Co | Shuhua Sports vs. Cultural Investment Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |