Correlation Between Changchun Faway and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun Faway Automobile and Hunan Investment Group, you can compare the effects of market volatilities on Changchun Faway and Hunan Investment 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 Faway with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Hunan Investment.
Diversification Opportunities for Changchun Faway and Hunan Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Hunan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Changchun Faway 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 Faway Automobile are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Changchun Faway i.e., Changchun Faway and Hunan Investment go up and down completely randomly.
Pair Corralation between Changchun Faway and Hunan Investment
Assuming the 90 days trading horizon Changchun Faway is expected to generate 1.81 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, Changchun Faway Automobile is 1.13 times less risky than Hunan Investment. It trades about 0.01 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 478.00 in Hunan Investment Group on October 4, 2024 and sell it today you would earn a total of 37.00 from holding Hunan Investment Group or generate 7.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Changchun Faway Automobile vs. Hunan Investment Group
Performance |
Timeline |
Changchun Faway Auto |
Hunan Investment |
Changchun Faway and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun Faway and Hunan Investment
The main advantage of trading using opposite Changchun Faway and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.Changchun Faway vs. Eit Environmental Development | Changchun Faway vs. Sinocat Environmental Technology | Changchun Faway vs. Chengdu Xinzhu RoadBridge | Changchun Faway vs. Sichuan Fulin Transportation |
Hunan Investment vs. PetroChina Co Ltd | Hunan Investment vs. China Mobile Limited | Hunan Investment vs. CNOOC Limited | Hunan Investment vs. Ping An Insurance |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Positions Ratings 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 | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |