Correlation Between Changchun and Jiaozuo Wanfang
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By analyzing existing cross correlation between Changchun UP Optotech and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Changchun and Jiaozuo Wanfang 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 Changchun with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Jiaozuo Wanfang.
Diversification Opportunities for Changchun and Jiaozuo Wanfang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Jiaozuo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Changchun 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 Changchun UP Optotech are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Changchun i.e., Changchun and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Changchun and Jiaozuo Wanfang
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.12 times more return on investment than Jiaozuo Wanfang. However, Changchun is 1.12 times more volatile than Jiaozuo Wanfang Aluminum. It trades about 0.05 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about 0.05 per unit of risk. If you would invest 3,287 in Changchun UP Optotech on September 14, 2024 and sell it today you would earn a total of 1,007 from holding Changchun UP Optotech or generate 30.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Changchun UP Optotech |
| Jiaozuo Wanfang Aluminum |
Changchun and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Jiaozuo Wanfang
The main advantage of trading using opposite Changchun and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec Co |
| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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