Correlation Between Chongqing Changan and New Hope
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Changan Automobile and New Hope Liuhe, you can compare the effects of market volatilities on Chongqing Changan and New Hope 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 Changan with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and New Hope.
Diversification Opportunities for Chongqing Changan and New Hope
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and New is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and New Hope Liuhe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Liuhe and Chongqing Changan 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 Changan Automobile are associated (or correlated) with New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Liuhe has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and New Hope go up and down completely randomly.
Pair Corralation between Chongqing Changan and New Hope
Assuming the 90 days trading horizon Chongqing Changan is expected to generate 2.03 times less return on investment than New Hope. But when comparing it to its historical volatility, Chongqing Changan Automobile is 1.61 times less risky than New Hope. It trades about 0.2 of its potential returns per unit of risk. New Hope Liuhe is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 869.00 in New Hope Liuhe on November 28, 2024 and sell it today you would earn a total of 120.00 from holding New Hope Liuhe or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. New Hope Liuhe
Performance |
| Timeline |
| Chongqing Changan |
| New Hope Liuhe |
Chongqing Changan and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and New Hope
The main advantage of trading using opposite Chongqing Changan and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| Chongqing Changan vs. Hubei Geoway Investment | Chongqing Changan vs. Zoje Resources Investment | Chongqing Changan vs. SI TECH Information Technology | Chongqing Changan vs. Kunwu Jiuding Investment |
| New Hope vs. Gansu Huangtai Wine marketing | New Hope vs. Cofoe Medical Technology | New Hope vs. Xian International Medical | New Hope vs. Qijing Machinery |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |