Correlation Between Jiaozuo Wanfang and Chongqing Shunbo
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Jiaozuo Wanfang and Chongqing Shunbo 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 Jiaozuo Wanfang with a short position of Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Chongqing Shunbo.
Diversification Opportunities for Jiaozuo Wanfang and Chongqing Shunbo
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiaozuo and Chongqing is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Chongqing Shunbo
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 1.08 times more return on investment than Chongqing Shunbo. However, Jiaozuo Wanfang is 1.08 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.1 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.05 per unit of risk. If you would invest 716.00 in Jiaozuo Wanfang Aluminum on November 28, 2024 and sell it today you would earn a total of 17.00 from holding Jiaozuo Wanfang Aluminum or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Chongqing Shunbo Aluminum |
Jiaozuo Wanfang and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Chongqing Shunbo
The main advantage of trading using opposite Jiaozuo Wanfang and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Jiaozuo Wanfang vs. Changjiang Publishing Media | Jiaozuo Wanfang vs. Xinhua Winshare Publishing | Jiaozuo Wanfang vs. Offshore Oil Engineering | Jiaozuo Wanfang vs. Shanghai Action Education |
| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Shandong Gold Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |