Correlation Between Chengdu Xingrong and Pure Cycle
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Pure Cycle, you can compare the effects of market volatilities on Chengdu Xingrong and Pure Cycle 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 Xingrong with a short position of Pure Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Pure Cycle.
Diversification Opportunities for Chengdu Xingrong and Pure Cycle
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chengdu and Pure is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Pure Cycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Cycle and Chengdu Xingrong 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 Xingrong Investment are associated (or correlated) with Pure Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Cycle has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Pure Cycle go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Pure Cycle
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Pure Cycle. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.93 times less risky than Pure Cycle. The stock trades about -0.18 of its potential returns per unit of risk. The Pure Cycle is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 988.00 in Pure Cycle on July 20, 2025 and sell it today you would earn a total of 109.00 from holding Pure Cycle or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.31% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Pure Cycle
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Pure Cycle |
Chengdu Xingrong and Pure Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Pure Cycle
The main advantage of trading using opposite Chengdu Xingrong and Pure Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Pure Cycle 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 Pure Cycle will offset losses from the drop in Pure Cycle's long position.| Chengdu Xingrong vs. Guangzhou KingTeller Technology | Chengdu Xingrong vs. Servyou Software Group | Chengdu Xingrong vs. ROPEOK Technology Group | Chengdu Xingrong vs. Kingsignal Technology Co |
| Pure Cycle vs. Global Water Resources | Pure Cycle vs. Artesian Resources | Pure Cycle vs. Cadiz Inc | Pure Cycle vs. RGC Resources |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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