Correlation Between Chongqing Changan and Saurer Intelligent
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By analyzing existing cross correlation between Chongqing Changan Automobile and Saurer Intelligent Technology, you can compare the effects of market volatilities on Chongqing Changan and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Saurer Intelligent.
Diversification Opportunities for Chongqing Changan and Saurer Intelligent
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chongqing and Saurer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Chongqing Changan and Saurer Intelligent
Assuming the 90 days trading horizon Chongqing Changan Automobile is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Changan Automobile is 4.28 times less risky than Saurer Intelligent. The stock trades about -0.13 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Saurer Intelligent Technology on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Saurer Intelligent Technology or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Saurer Intelligent Technology
Performance |
| Timeline |
| Chongqing Changan |
| Saurer Intelligent |
Chongqing Changan and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Saurer Intelligent
The main advantage of trading using opposite Chongqing Changan and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Chongqing Changan vs. Shandong Intco Medical | Chongqing Changan vs. Huizhou Speed Wireless | Chongqing Changan vs. Fiberhome Telecommunication Technologies | Chongqing Changan vs. Kontour Medical Technology |
| Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Kweichow Moutai Co | Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. China Mobile Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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