Correlation Between Changzhou Evergreen and Changchun
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By analyzing existing cross correlation between Changzhou Evergreen Technology and Changchun UP Optotech, you can compare the effects of market volatilities on Changzhou Evergreen 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 Changzhou Evergreen with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Evergreen and Changchun.
Diversification Opportunities for Changzhou Evergreen and Changchun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changzhou and Changchun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Evergreen Technology 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 Changzhou Evergreen 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 Changzhou Evergreen Technology 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 Changzhou Evergreen i.e., Changzhou Evergreen and Changchun go up and down completely randomly.
Pair Corralation between Changzhou Evergreen and Changchun
Assuming the 90 days trading horizon Changzhou Evergreen Technology is expected to under-perform the Changchun. But the stock apears to be less risky and, when comparing its historical volatility, Changzhou Evergreen Technology is 1.48 times less risky than Changchun. The stock trades about -0.01 of its potential returns per unit of risk. The Changchun UP Optotech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,762 in Changchun UP Optotech on September 3, 2024 and sell it today you would earn a total of 1,393 from holding Changchun UP Optotech or generate 50.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changzhou Evergreen Technology vs. Changchun UP Optotech
Performance |
| Timeline |
| Changzhou Evergreen |
| Changchun UP Optotech |
Changzhou Evergreen and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changzhou Evergreen and Changchun
The main advantage of trading using opposite Changzhou Evergreen and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Evergreen 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.| Changzhou Evergreen vs. Cultural Investment Holdings | Changzhou Evergreen vs. Gome Telecom Equipment | Changzhou Evergreen vs. Bus Online Co | Changzhou Evergreen vs. Holitech Technology Co |
| Changchun vs. Focus Media Information | Changchun vs. Jiangsu Yanghe Brewery | Changchun vs. Guangdong Brandmax Marketing | Changchun vs. YLZ Information Tech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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