Correlation Between Changchun High and Zangge Holding
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By analyzing existing cross correlation between Changchun High New and Zangge Holding Co, you can compare the effects of market volatilities on Changchun High and Zangge Holding 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 Changchun High with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Zangge Holding.
Diversification Opportunities for Changchun High and Zangge Holding
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Zangge is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Changchun High 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 Changchun High New are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Changchun High i.e., Changchun High and Zangge Holding go up and down completely randomly.
Pair Corralation between Changchun High and Zangge Holding
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Zangge Holding. In addition to that, Changchun High is 1.07 times more volatile than Zangge Holding Co. It trades about -0.03 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.05 per unit of volatility. If you would invest 2,174 in Zangge Holding Co on September 26, 2024 and sell it today you would earn a total of 601.00 from holding Zangge Holding Co or generate 27.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Zangge Holding Co
Performance |
| Timeline |
| Changchun High New |
| Zangge Holding |
Changchun High and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Zangge Holding
The main advantage of trading using opposite Changchun High and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Changchun High vs. Agricultural Bank of | Changchun High vs. Industrial and Commercial | Changchun High vs. Bank of China | Changchun High vs. China Construction Bank |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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