Correlation Between Western Metal and Changchun High
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Changchun High New, you can compare the effects of market volatilities on Western Metal and Changchun High 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 Western Metal with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Changchun High.
Diversification Opportunities for Western Metal and Changchun High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Western and Changchun is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Western Metal 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 Western Metal Materials are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Western Metal i.e., Western Metal and Changchun High go up and down completely randomly.
Pair Corralation between Western Metal and Changchun High
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.05 times more return on investment than Changchun High. However, Western Metal is 1.05 times more volatile than Changchun High New. It trades about 0.09 of its potential returns per unit of risk. Changchun High New is currently generating about 0.03 per unit of risk. If you would invest 1,411 in Western Metal Materials on September 24, 2024 and sell it today you would earn a total of 400.00 from holding Western Metal Materials or generate 28.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Western Metal Materials vs. Changchun High New
Performance |
Timeline |
Western Metal Materials |
Changchun High New |
Western Metal and Changchun High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Metal and Changchun High
The main advantage of trading using opposite Western Metal and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Changchun High 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 High will offset losses from the drop in Changchun High's long position.Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
Changchun High vs. Western Metal Materials | Changchun High vs. Tongyu Communication | Changchun High vs. Chengtun Mining Group | Changchun High vs. Uroica Mining Safety |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Transaction History View history of all your transactions and understand their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |