Correlation Between Chongqing Sulian and Yantai North
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Yantai North Andre, you can compare the effects of market volatilities on Chongqing Sulian and Yantai North 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 Sulian with a short position of Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Yantai North.
Diversification Opportunities for Chongqing Sulian and Yantai North
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Yantai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre and Chongqing Sulian 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 Sulian Plastic are associated (or correlated) with Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Yantai North go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Yantai North
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to under-perform the Yantai North. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Sulian Plastic is 1.36 times less risky than Yantai North. The stock trades about -0.03 of its potential returns per unit of risk. The Yantai North Andre is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,730 in Yantai North Andre on September 25, 2024 and sell it today you would earn a total of 90.00 from holding Yantai North Andre or generate 3.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Sulian Plastic vs. Yantai North Andre
Performance |
Timeline |
Chongqing Sulian Plastic |
Yantai North Andre |
Chongqing Sulian and Yantai North Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Sulian and Yantai North
The main advantage of trading using opposite Chongqing Sulian and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North's long position.Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian vs. Dongxing Sec Co |
Yantai North vs. Shandong Publishing Media | Yantai North vs. Super Dragon Engineering Plastics | Yantai North vs. Chongqing Sulian Plastic | Yantai North vs. Hangzhou Gaoxin Rubber |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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