Correlation Between Changchun High and Guangzhou Jiacheng
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By analyzing existing cross correlation between Changchun High New and Guangzhou Jiacheng, you can compare the effects of market volatilities on Changchun High and Guangzhou Jiacheng 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 Guangzhou Jiacheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Guangzhou Jiacheng.
Diversification Opportunities for Changchun High and Guangzhou Jiacheng
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Changchun and Guangzhou is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Guangzhou Jiacheng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jiacheng 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 Guangzhou Jiacheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jiacheng has no effect on the direction of Changchun High i.e., Changchun High and Guangzhou Jiacheng go up and down completely randomly.
Pair Corralation between Changchun High and Guangzhou Jiacheng
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Guangzhou Jiacheng. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.33 times less risky than Guangzhou Jiacheng. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou Jiacheng is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,847 in Guangzhou Jiacheng on December 5, 2024 and sell it today you would lose (574.00) from holding Guangzhou Jiacheng or give up 31.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Guangzhou Jiacheng
Performance |
| Timeline |
| Changchun High New |
| Guangzhou Jiacheng |
Changchun High and Guangzhou Jiacheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Guangzhou Jiacheng
The main advantage of trading using opposite Changchun High and Guangzhou Jiacheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Guangzhou Jiacheng 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 Guangzhou Jiacheng will offset losses from the drop in Guangzhou Jiacheng's long position.| Changchun High vs. Xiangyu Medical Co | ||
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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