Correlation Between Chengdu B and Cloud Live
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By analyzing existing cross correlation between Chengdu B ray Media and Cloud Live Technology, you can compare the effects of market volatilities on Chengdu B and Cloud Live 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 B with a short position of Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Cloud Live.
Diversification Opportunities for Chengdu B and Cloud Live
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Cloud is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology and Chengdu B 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 B ray Media are associated (or correlated) with Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Chengdu B i.e., Chengdu B and Cloud Live go up and down completely randomly.
Pair Corralation between Chengdu B and Cloud Live
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.18 times more return on investment than Cloud Live. However, Chengdu B is 1.18 times more volatile than Cloud Live Technology. It trades about -0.08 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.29 per unit of risk. If you would invest 505.00 in Chengdu B ray Media on October 6, 2024 and sell it today you would lose (66.00) from holding Chengdu B ray Media or give up 13.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu B ray Media vs. Cloud Live Technology
Performance |
Timeline |
Chengdu B ray |
Cloud Live Technology |
Chengdu B and Cloud Live Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu B and Cloud Live
The main advantage of trading using opposite Chengdu B and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.Chengdu B vs. China State Construction | Chengdu B vs. Poly Real Estate | Chengdu B vs. China Vanke Co | Chengdu B vs. Huafa Industrial Co |
Cloud Live vs. Kangxin New Materials | Cloud Live vs. Guangzhou Dongfang Hotel | Cloud Live vs. Hangzhou Gaoxin Rubber | Cloud Live vs. Fuda Alloy Materials |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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