Correlation Between Shaanxi Construction and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shaanxi Construction Machinery and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Shaanxi Construction and Chengdu Kanghua 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 Shaanxi Construction with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Chengdu Kanghua.
Diversification Opportunities for Shaanxi Construction and Chengdu Kanghua
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Chengdu is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Shaanxi Construction 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 Shaanxi Construction Machinery are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Shaanxi Construction i.e., Shaanxi Construction and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Chengdu Kanghua
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to generate 0.85 times more return on investment than Chengdu Kanghua. However, Shaanxi Construction Machinery is 1.17 times less risky than Chengdu Kanghua. It trades about 0.24 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.1 per unit of risk. If you would invest 220.00 in Shaanxi Construction Machinery on September 9, 2024 and sell it today you would earn a total of 151.00 from holding Shaanxi Construction Machinery or generate 68.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shaanxi Construction Machinery vs. Chengdu Kanghua Biological
Performance |
Timeline |
Shaanxi Construction |
Chengdu Kanghua Biol |
Shaanxi Construction and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shaanxi Construction and Chengdu Kanghua
The main advantage of trading using opposite Shaanxi Construction and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.Shaanxi Construction vs. Chongqing Changan Automobile | Shaanxi Construction vs. Ningbo Fangzheng Automobile | Shaanxi Construction vs. Xiangyu Medical Co | Shaanxi Construction vs. Allmed Medical Products |
Chengdu Kanghua vs. Xiwang Foodstuffs Co | Chengdu Kanghua vs. Great Sun Foods Co | Chengdu Kanghua vs. New Hope Dairy | Chengdu Kanghua vs. Jointo Energy Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |