Correlation Between Advanced Technology and Changchun
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By analyzing existing cross correlation between Advanced Technology Materials and Changchun UP Optotech, you can compare the effects of market volatilities on Advanced Technology and Changchun 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 Advanced Technology with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Changchun.
Diversification Opportunities for Advanced Technology and Changchun
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Changchun is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Advanced Technology 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 Advanced Technology Materials are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Advanced Technology i.e., Advanced Technology and Changchun go up and down completely randomly.
Pair Corralation between Advanced Technology and Changchun
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 1.14 times more return on investment than Changchun. However, Advanced Technology is 1.14 times more volatile than Changchun UP Optotech. It trades about 0.08 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.05 per unit of risk. If you would invest 1,144 in Advanced Technology Materials on October 25, 2024 and sell it today you would earn a total of 49.00 from holding Advanced Technology Materials or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. Changchun UP Optotech
Performance |
| Timeline |
| Advanced Technology |
| Changchun UP Optotech |
Advanced Technology and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and Changchun
The main advantage of trading using opposite Advanced Technology and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Advanced Technology vs. Caihong Display Devices | Advanced Technology vs. Unisplendour Corp | Advanced Technology vs. AUPU Home Style | Advanced Technology vs. Markor International Home |
| Changchun vs. Kweichow Moutai Co | Changchun vs. Contemporary Amperex Technology | Changchun vs. Beijing Roborock Technology | Changchun vs. BYD Co Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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