Correlation Between Hefei Metalforming and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Chengdu Kanghua.
Diversification Opportunities for Hefei Metalforming and Chengdu Kanghua
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Chengdu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Chengdu Kanghua
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.77 times more return on investment than Chengdu Kanghua. However, Hefei Metalforming Mach is 1.29 times less risky than Chengdu Kanghua. It trades about 0.2 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 555.00 in Hefei Metalforming Mach on September 12, 2024 and sell it today you would earn a total of 264.00 from holding Hefei Metalforming Mach or generate 47.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hefei Metalforming Mach vs. Chengdu Kanghua Biological
Performance |
Timeline |
Hefei Metalforming Mach |
Chengdu Kanghua Biol |
Hefei Metalforming and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hefei Metalforming and Chengdu Kanghua
The main advantage of trading using opposite Hefei Metalforming and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Bank of China | Hefei Metalforming vs. PetroChina Co Ltd |
Chengdu Kanghua vs. Heilongjiang Publishing Media | Chengdu Kanghua vs. China Publishing Media | Chengdu Kanghua vs. Qtone Education Group | Chengdu Kanghua vs. XinJiang GuoTong Pipeline |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |