Correlation Between Invengo Information and Changshu Tongrun
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By analyzing existing cross correlation between Invengo Information Technology and Changshu Tongrun Auto, you can compare the effects of market volatilities on Invengo Information and Changshu Tongrun 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 Invengo Information with a short position of Changshu Tongrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and Changshu Tongrun.
Diversification Opportunities for Invengo Information and Changshu Tongrun
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invengo and Changshu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and Changshu Tongrun Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tongrun Auto and Invengo Information 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 Invengo Information Technology are associated (or correlated) with Changshu Tongrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tongrun Auto has no effect on the direction of Invengo Information i.e., Invengo Information and Changshu Tongrun go up and down completely randomly.
Pair Corralation between Invengo Information and Changshu Tongrun
Assuming the 90 days trading horizon Invengo Information Technology is expected to generate 1.46 times more return on investment than Changshu Tongrun. However, Invengo Information is 1.46 times more volatile than Changshu Tongrun Auto. It trades about 0.14 of its potential returns per unit of risk. Changshu Tongrun Auto is currently generating about 0.13 per unit of risk. If you would invest 522.00 in Invengo Information Technology on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Invengo Information Technology or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Invengo Information Technology vs. Changshu Tongrun Auto
Performance |
| Timeline |
| Invengo Information |
| Changshu Tongrun Auto |
Invengo Information and Changshu Tongrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and Changshu Tongrun
The main advantage of trading using opposite Invengo Information and Changshu Tongrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information position performs unexpectedly, Changshu Tongrun 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 Changshu Tongrun will offset losses from the drop in Changshu Tongrun's long position.| Invengo Information vs. Tianshan Aluminum Group | Invengo Information vs. Chison Medical Technologies | Invengo Information vs. Shandong Hongchuang Aluminum | Invengo Information vs. Guangdong Jingyi Metal |
| Changshu Tongrun vs. Anhui Huaertai Chemical | Changshu Tongrun vs. Invengo Information Technology | Changshu Tongrun vs. Shenzhen Noposion Agrochemicals | Changshu Tongrun 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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