Correlation Between Guangdong Jingyi and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Chongqing Changan Automobile, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Chongqing Changan.
Diversification Opportunities for Guangdong Jingyi and Chongqing Changan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Chongqing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Chongqing Changan go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Chongqing Changan
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.54 times more return on investment than Chongqing Changan. However, Guangdong Jingyi Metal is 1.84 times less risky than Chongqing Changan. It trades about 0.09 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.01 per unit of risk. If you would invest 727.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would earn a total of 22.00 from holding Guangdong Jingyi Metal or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Chongqing Changan |
Guangdong Jingyi and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Chongqing Changan
The main advantage of trading using opposite Guangdong Jingyi and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
| Chongqing Changan vs. Industrial and Commercial | Chongqing Changan vs. China Construction Bank | Chongqing Changan vs. Agricultural Bank of | Chongqing Changan vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |