Correlation Between Changchun High and SI TECH
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By analyzing existing cross correlation between Changchun High New and SI TECH Information Technology, you can compare the effects of market volatilities on Changchun High and SI TECH 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 SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and SI TECH.
Diversification Opportunities for Changchun High and SI TECH
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and 300608 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information 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 SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of Changchun High i.e., Changchun High and SI TECH go up and down completely randomly.
Pair Corralation between Changchun High and SI TECH
Assuming the 90 days trading horizon Changchun High New is expected to generate 0.31 times more return on investment than SI TECH. However, Changchun High New is 3.2 times less risky than SI TECH. It trades about -0.5 of its potential returns per unit of risk. SI TECH Information Technology is currently generating about -0.41 per unit of risk. If you would invest 10,368 in Changchun High New on October 16, 2024 and sell it today you would lose (1,098) from holding Changchun High New or give up 10.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Changchun High New vs. SI TECH Information Technology
Performance |
| Timeline |
| Changchun High New |
| SI TECH Information |
Changchun High and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and SI TECH
The main advantage of trading using opposite Changchun High and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| Changchun High vs. Maxvision Technology Corp | Changchun High vs. Kingsignal Technology Co | Changchun High vs. Bangyan Technology Co | Changchun High vs. Soyea Technology Co |
| SI TECH vs. Shenzhen Kexin Communication | SI TECH vs. Yindu Kitchen Equipment | SI TECH vs. State Grid InformationCommunication | SI TECH vs. Gansu Huangtai Wine marketing |
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 CEOs Directory module to screen CEOs from public companies around the world.
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