Correlation Between Chongqing Changan and Chengtun Mining
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By analyzing existing cross correlation between Chongqing Changan Automobile and Chengtun Mining Group, you can compare the effects of market volatilities on Chongqing Changan and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Chengtun Mining.
Diversification Opportunities for Chongqing Changan and Chengtun Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chongqing and Chengtun is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Chongqing Changan i.e., Chongqing Changan and Chengtun Mining go up and down completely randomly.
Pair Corralation between Chongqing Changan and Chengtun Mining
Assuming the 90 days trading horizon Chongqing Changan Automobile is expected to generate 1.09 times more return on investment than Chengtun Mining. However, Chongqing Changan is 1.09 times more volatile than Chengtun Mining Group. It trades about 0.02 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.02 per unit of risk. If you would invest 1,208 in Chongqing Changan Automobile on October 12, 2024 and sell it today you would earn a total of 59.00 from holding Chongqing Changan Automobile or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Chengtun Mining Group
Performance |
| Timeline |
| Chongqing Changan |
| Chengtun Mining Group |
Chongqing Changan and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Chengtun Mining
The main advantage of trading using opposite Chongqing Changan and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Chongqing Changan vs. Shanghai Broadband Technology | Chongqing Changan vs. Anshan Senyuan Road | Chongqing Changan vs. PKU HealthCare Corp | Chongqing Changan vs. Goodwill E Health |
| Chengtun Mining vs. Chongqing Changan Automobile | Chengtun Mining vs. Iat Automobile Technology | Chengtun Mining vs. Shenzhen Zhongzhuang Construction | Chengtun Mining vs. Hongrun Construction Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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