Correlation Between Chongqing Changan and Heren Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Changan Automobile and Heren Health Co, you can compare the effects of market volatilities on Chongqing Changan and Heren Health 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 Heren Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Heren Health.
Diversification Opportunities for Chongqing Changan and Heren Health
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Heren is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Heren Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heren Health 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 Heren Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heren Health has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Heren Health go up and down completely randomly.
Pair Corralation between Chongqing Changan and Heren Health
Assuming the 90 days trading horizon Chongqing Changan is expected to generate 2.85 times less return on investment than Heren Health. But when comparing it to its historical volatility, Chongqing Changan Automobile is 1.39 times less risky than Heren Health. It trades about 0.01 of its potential returns per unit of risk. Heren Health Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,409 in Heren Health Co on November 5, 2024 and sell it today you would lose (1.00) from holding Heren Health Co or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Heren Health Co
Performance |
| Timeline |
| Chongqing Changan |
| Heren Health |
Chongqing Changan and Heren Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Heren Health
The main advantage of trading using opposite Chongqing Changan and Heren Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Heren Health 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 Heren Health will offset losses from the drop in Heren Health's long position.| Chongqing Changan vs. Eastroc Beverage Group | Chongqing Changan vs. Xiamen Bank Co | Chongqing Changan vs. Peoples Insurance of | Chongqing Changan vs. Ping An Insurance |
| Heren Health vs. Grandblue Environment Co | Heren Health vs. Fujian Nanwang Environment | Heren Health vs. Sinosteel Engineering and | Heren Health vs. Tongxing Environmental Protection |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |