Correlation Between Changchun and Sungrow Power
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By analyzing existing cross correlation between Changchun UP Optotech and Sungrow Power Supply, you can compare the effects of market volatilities on Changchun and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Sungrow Power.
Diversification Opportunities for Changchun and Sungrow Power
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changchun and Sungrow is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Changchun i.e., Changchun and Sungrow Power go up and down completely randomly.
Pair Corralation between Changchun and Sungrow Power
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.1 times more return on investment than Sungrow Power. However, Changchun is 1.1 times more volatile than Sungrow Power Supply. It trades about 0.05 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about 0.03 per unit of risk. If you would invest 2,728 in Changchun UP Optotech on October 14, 2024 and sell it today you would earn a total of 860.00 from holding Changchun UP Optotech or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Sungrow Power Supply
Performance |
| Timeline |
| Changchun UP Optotech |
| Sungrow Power Supply |
Changchun and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Sungrow Power
The main advantage of trading using opposite Changchun and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Changchun vs. Shenyang Blue Silver | Changchun vs. Gem Year Industrial Co | Changchun vs. Qingdao Choho Industrial | Changchun vs. Tonghua Grape Wine |
| Sungrow Power vs. Jinhe Biotechnology Co | Sungrow Power vs. Changchun UP Optotech | Sungrow Power vs. Eyebright Medical Technology | Sungrow Power vs. Linewell Software Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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