Correlation Between Changchun Engley and Beijing Compass
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By analyzing existing cross correlation between Changchun Engley Automobile and Beijing Compass Technology, you can compare the effects of market volatilities on Changchun Engley and Beijing Compass 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 Engley with a short position of Beijing Compass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Beijing Compass.
Diversification Opportunities for Changchun Engley and Beijing Compass
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Beijing is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Beijing Compass Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Compass Tech and Changchun Engley 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 Engley Automobile are associated (or correlated) with Beijing Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Compass Tech has no effect on the direction of Changchun Engley i.e., Changchun Engley and Beijing Compass go up and down completely randomly.
Pair Corralation between Changchun Engley and Beijing Compass
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to generate 0.58 times more return on investment than Beijing Compass. However, Changchun Engley Automobile is 1.71 times less risky than Beijing Compass. It trades about -0.13 of its potential returns per unit of risk. Beijing Compass Technology is currently generating about -0.13 per unit of risk. If you would invest 428.00 in Changchun Engley Automobile on October 9, 2024 and sell it today you would lose (57.00) from holding Changchun Engley Automobile or give up 13.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Changchun Engley Automobile vs. Beijing Compass Technology
Performance |
Timeline |
Changchun Engley Aut |
Beijing Compass Tech |
Changchun Engley and Beijing Compass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun Engley and Beijing Compass
The main advantage of trading using opposite Changchun Engley and Beijing Compass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Beijing Compass 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 Beijing Compass will offset losses from the drop in Beijing Compass' long position.Changchun Engley vs. Ming Yang Smart | Changchun Engley vs. 159681 | Changchun Engley vs. 159005 | Changchun Engley vs. Loctek Ergonomic Technology |
Beijing Compass vs. Fujian Boss Software | Beijing Compass vs. Integrated Electronic Systems | Beijing Compass vs. Zhejiang Kingland Pipeline | Beijing Compass vs. Jiangyin Jianghua Microelectronics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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