Correlation Between Chongqing Shunbo and Miracll Chemicals
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Miracll Chemicals Co, you can compare the effects of market volatilities on Chongqing Shunbo and Miracll Chemicals 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 Chongqing Shunbo with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Miracll Chemicals.
Diversification Opportunities for Chongqing Shunbo and Miracll Chemicals
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Miracll is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and Chongqing Shunbo 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 Chongqing Shunbo Aluminum are associated (or correlated) with Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Miracll Chemicals
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 1.11 times more return on investment than Miracll Chemicals. However, Chongqing Shunbo is 1.11 times more volatile than Miracll Chemicals Co. It trades about -0.02 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about -0.28 per unit of risk. If you would invest 671.00 in Chongqing Shunbo Aluminum on September 25, 2024 and sell it today you would lose (10.00) from holding Chongqing Shunbo Aluminum or give up 1.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Miracll Chemicals Co
Performance |
Timeline |
Chongqing Shunbo Aluminum |
Miracll Chemicals |
Chongqing Shunbo and Miracll Chemicals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Shunbo and Miracll Chemicals
The main advantage of trading using opposite Chongqing Shunbo and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Inner Mongolia BaoTou |
Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining | Miracll Chemicals vs. Rongsheng Petrochemical 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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