Correlation Between Changchun BCHT and Cofco Biochemical
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Cofco Biochemical Anhui, you can compare the effects of market volatilities on Changchun BCHT and Cofco Biochemical 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 BCHT with a short position of Cofco Biochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Cofco Biochemical.
Diversification Opportunities for Changchun BCHT and Cofco Biochemical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Cofco is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Cofco Biochemical Anhui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofco Biochemical Anhui and Changchun BCHT 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 BCHT Biotechnology are associated (or correlated) with Cofco Biochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofco Biochemical Anhui has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Cofco Biochemical go up and down completely randomly.
Pair Corralation between Changchun BCHT and Cofco Biochemical
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to generate 1.41 times more return on investment than Cofco Biochemical. However, Changchun BCHT is 1.41 times more volatile than Cofco Biochemical Anhui. It trades about -0.3 of its potential returns per unit of risk. Cofco Biochemical Anhui is currently generating about -0.43 per unit of risk. If you would invest 2,745 in Changchun BCHT Biotechnology on October 10, 2024 and sell it today you would lose (325.00) from holding Changchun BCHT Biotechnology or give up 11.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Changchun BCHT Biotechnology vs. Cofco Biochemical Anhui
Performance |
Timeline |
Changchun BCHT Biote |
Cofco Biochemical Anhui |
Changchun BCHT and Cofco Biochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun BCHT and Cofco Biochemical
The main advantage of trading using opposite Changchun BCHT and Cofco Biochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Cofco Biochemical 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 Cofco Biochemical will offset losses from the drop in Cofco Biochemical's long position.Changchun BCHT vs. Semiconductor Manufacturing Intl | Changchun BCHT vs. Hunan Investment Group | Changchun BCHT vs. Shanghai V Test Semiconductor | Changchun BCHT vs. StarPower Semiconductor |
Cofco Biochemical vs. Changjiang Publishing Media | Cofco Biochemical vs. Time Publishing and | Cofco Biochemical vs. Jiugui Liquor Co | Cofco Biochemical vs. Tinavi Medical Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
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