Correlation Between Shanxi Xishan and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanxi Xishan Coal and Chongqing Changan Automobile, you can compare the effects of market volatilities on Shanxi Xishan and Chongqing Changan 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 Shanxi Xishan with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Xishan and Chongqing Changan.
Diversification Opportunities for Shanxi Xishan and Chongqing Changan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanxi and Chongqing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Xishan Coal and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Shanxi Xishan 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 Shanxi Xishan Coal are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Shanxi Xishan i.e., Shanxi Xishan and Chongqing Changan go up and down completely randomly.
Pair Corralation between Shanxi Xishan and Chongqing Changan
Assuming the 90 days trading horizon Shanxi Xishan is expected to generate 1.48 times less return on investment than Chongqing Changan. In addition to that, Shanxi Xishan is 1.17 times more volatile than Chongqing Changan Automobile. It trades about 0.02 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.03 per unit of volatility. If you would invest 325.00 in Chongqing Changan Automobile on August 25, 2024 and sell it today you would earn a total of 40.00 from holding Chongqing Changan Automobile or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Xishan Coal vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Shanxi Xishan Coal |
| Chongqing Changan |
Shanxi Xishan and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Xishan and Chongqing Changan
The main advantage of trading using opposite Shanxi Xishan and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Xishan position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Shanxi Xishan vs. Zhejiang Kingland Pipeline | Shanxi Xishan vs. Xiangyang Automobile Bearing | Shanxi Xishan vs. Suzhou Novoprotein Scientific | Shanxi Xishan vs. COL Digital Publishing |
| Chongqing Changan vs. Shenyang Huitian Thermal | Chongqing Changan vs. Longmaster Information Tech | Chongqing Changan vs. Yonyou Auto Information | Chongqing Changan vs. Guangzhou Ruoyuchen Information |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |