Correlation Between Chongqing Changan and Poly Real
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By analyzing existing cross correlation between Chongqing Changan Automobile and Poly Real Estate, you can compare the effects of market volatilities on Chongqing Changan and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Poly Real.
Diversification Opportunities for Chongqing Changan and Poly Real
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Poly is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Poly Real go up and down completely randomly.
Pair Corralation between Chongqing Changan and Poly Real
Assuming the 90 days trading horizon Chongqing Changan Automobile is expected to generate 1.0 times more return on investment than Poly Real. However, Chongqing Changan Automobile is 1.0 times less risky than Poly Real. It trades about 0.02 of its potential returns per unit of risk. Poly Real Estate is currently generating about 0.0 per unit of risk. If you would invest 1,206 in Chongqing Changan Automobile on October 29, 2024 and sell it today you would earn a total of 54.00 from holding Chongqing Changan Automobile or generate 4.48% 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. Poly Real Estate
Performance |
| Timeline |
| Chongqing Changan |
| Poly Real Estate |
Chongqing Changan and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Poly Real
The main advantage of trading using opposite Chongqing Changan and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Chongqing Changan vs. Wintao Communications Co | Chongqing Changan vs. FSPG Hi Tech Co | Chongqing Changan vs. Tianjin Hi Tech Development | Chongqing Changan vs. Zijin Mining Group |
| Poly Real vs. Xiangyang Automobile Bearing | Poly Real vs. China Mobile Limited | Poly Real vs. China World Trade | Poly Real vs. Ningbo Fangzheng Automobile |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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