Correlation Between Chongqing Changan and Bus Online
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By analyzing existing cross correlation between Chongqing Changan Automobile and Bus Online Co, you can compare the effects of market volatilities on Chongqing Changan and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Bus Online.
Diversification Opportunities for Chongqing Changan and Bus Online
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Bus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Bus Online go up and down completely randomly.
Pair Corralation between Chongqing Changan and Bus Online
Assuming the 90 days trading horizon Chongqing Changan Automobile is expected to generate 0.31 times more return on investment than Bus Online. However, Chongqing Changan Automobile is 3.18 times less risky than Bus Online. It trades about -0.3 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.17 per unit of risk. If you would invest 1,406 in Chongqing Changan Automobile on October 11, 2024 and sell it today you would lose (139.00) from holding Chongqing Changan Automobile or give up 9.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Bus Online Co
Performance |
| Timeline |
| Chongqing Changan |
| Bus Online |
Chongqing Changan and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Bus Online
The main advantage of trading using opposite Chongqing Changan and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Chongqing Changan vs. Elite Color Environmental | Chongqing Changan vs. Marssenger Kitchenware Co | Chongqing Changan vs. Penyao Environmental Protection | Chongqing Changan vs. Anhui Deli Household |
| Bus Online vs. Henan Shuanghui Investment | Bus Online vs. Tieling Newcity Investment | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Beijing HuaYuanYiTong Thermal |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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