Correlation Between Success Electronics and Chongqing Shunbo
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By analyzing existing cross correlation between Success Electronics and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Success Electronics and Chongqing Shunbo 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 Success Electronics with a short position of Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Success Electronics and Chongqing Shunbo.
Diversification Opportunities for Success Electronics and Chongqing Shunbo
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Success and Chongqing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Success Electronics and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum and Success Electronics 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 Success Electronics are associated (or correlated) with Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Success Electronics i.e., Success Electronics and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Success Electronics and Chongqing Shunbo
Assuming the 90 days trading horizon Success Electronics is expected to generate 1.68 times less return on investment than Chongqing Shunbo. In addition to that, Success Electronics is 1.04 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.09 of its total potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about 0.15 per unit of volatility. If you would invest 530.00 in Chongqing Shunbo Aluminum on September 3, 2024 and sell it today you would earn a total of 139.00 from holding Chongqing Shunbo Aluminum or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Success Electronics vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Success Electronics |
| Chongqing Shunbo Aluminum |
Success Electronics and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Success Electronics and Chongqing Shunbo
The main advantage of trading using opposite Success Electronics and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Success Electronics position performs unexpectedly, Chongqing Shunbo 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 Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Success Electronics vs. Agricultural Bank of | Success Electronics vs. China Construction Bank | Success Electronics vs. Postal Savings Bank | Success Electronics vs. Bank of Communications |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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