Correlation Between Chengdu Xingrong and Changchun Engley
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Changchun Engley Automobile, you can compare the effects of market volatilities on Chengdu Xingrong and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Changchun Engley.
Diversification Opportunities for Chengdu Xingrong and Changchun Engley
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Changchun is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Changchun Engley go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Changchun Engley
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.59 times more return on investment than Changchun Engley. However, Chengdu Xingrong Investment is 1.7 times less risky than Changchun Engley. It trades about -0.1 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.07 per unit of risk. If you would invest 752.00 in Chengdu Xingrong Investment on November 20, 2024 and sell it today you would lose (63.00) from holding Chengdu Xingrong Investment or give up 8.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Xingrong Investment vs. Changchun Engley Automobile
Performance |
Timeline |
Chengdu Xingrong Inv |
Changchun Engley Aut |
Chengdu Xingrong and Changchun Engley Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Xingrong and Changchun Engley
The main advantage of trading using opposite Chengdu Xingrong and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.Chengdu Xingrong vs. Ningbo MedicalSystem Biotechnology | ||
Chengdu Xingrong vs. Guangzhou Haozhi Industrial | ||
Chengdu Xingrong vs. Gem Year Industrial Co | ||
Chengdu Xingrong vs. Sichuan Yahua Industrial |
Changchun Engley vs. Shanghai Yanpu Metal | ||
Changchun Engley vs. Suzhou Industrial Park | ||
Changchun Engley vs. Bosera CMSK Industrial | ||
Changchun Engley vs. Guangzhou Haozhi Industrial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
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 | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Global Correlations Find global opportunities by holding instruments from different markets |