Correlation Between Advanced Technology and Chongqing Sulian
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By analyzing existing cross correlation between Advanced Technology Materials and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Advanced Technology and Chongqing Sulian 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 Advanced Technology with a short position of Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Chongqing Sulian.
Diversification Opportunities for Advanced Technology and Chongqing Sulian
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advanced and Chongqing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic and Advanced Technology 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 Advanced Technology Materials are associated (or correlated) with Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Advanced Technology i.e., Advanced Technology and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Advanced Technology and Chongqing Sulian
Assuming the 90 days trading horizon Advanced Technology Materials is expected to under-perform the Chongqing Sulian. In addition to that, Advanced Technology is 1.11 times more volatile than Chongqing Sulian Plastic. It trades about -0.26 of its total potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.05 per unit of volatility. If you would invest 2,764 in Chongqing Sulian Plastic on September 24, 2024 and sell it today you would lose (95.00) from holding Chongqing Sulian Plastic or give up 3.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Advanced Technology Materials vs. Chongqing Sulian Plastic
Performance |
Timeline |
Advanced Technology |
Chongqing Sulian Plastic |
Advanced Technology and Chongqing Sulian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advanced Technology and Chongqing Sulian
The main advantage of trading using opposite Advanced Technology and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian vs. Dongxing Sec Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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