Correlation Between Changchun High and JS Corrugating
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By analyzing existing cross correlation between Changchun High New and JS Corrugating Machinery, you can compare the effects of market volatilities on Changchun High and JS Corrugating 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 Changchun High with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and JS Corrugating.
Diversification Opportunities for Changchun High and JS Corrugating
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and 000821 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Changchun High 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 Changchun High New are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Changchun High i.e., Changchun High and JS Corrugating go up and down completely randomly.
Pair Corralation between Changchun High and JS Corrugating
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the JS Corrugating. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.58 times less risky than JS Corrugating. The stock trades about -0.26 of its potential returns per unit of risk. The JS Corrugating Machinery is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,392 in JS Corrugating Machinery on September 28, 2024 and sell it today you would lose (90.00) from holding JS Corrugating Machinery or give up 6.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Changchun High New vs. JS Corrugating Machinery
Performance |
Timeline |
Changchun High New |
JS Corrugating Machinery |
Changchun High and JS Corrugating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun High and JS Corrugating
The main advantage of trading using opposite Changchun High and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.Changchun High vs. Agricultural Bank of | Changchun High vs. Industrial and Commercial | Changchun High vs. Bank of China | Changchun High vs. China Construction Bank |
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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 Positions Ratings module to 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.
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