Correlation Between Changchun and Shenyang Blue
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By analyzing existing cross correlation between Changchun UP Optotech and Shenyang Blue Silver, you can compare the effects of market volatilities on Changchun and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Shenyang Blue.
Diversification Opportunities for Changchun and Shenyang Blue
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Shenyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Changchun i.e., Changchun and Shenyang Blue go up and down completely randomly.
Pair Corralation between Changchun and Shenyang Blue
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.01 times more return on investment than Shenyang Blue. However, Changchun is 1.01 times more volatile than Shenyang Blue Silver. It trades about -0.01 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.12 per unit of risk. If you would invest 4,288 in Changchun UP Optotech on September 1, 2024 and sell it today you would lose (133.00) from holding Changchun UP Optotech or give up 3.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Shenyang Blue Silver
Performance |
| Timeline |
| Changchun UP Optotech |
| Shenyang Blue Silver |
Changchun and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Shenyang Blue
The main advantage of trading using opposite Changchun and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Changchun vs. Zhongshan Public Utilities | Changchun vs. Harvest Fund Management | Changchun vs. Offshore Oil Engineering | Changchun vs. Xinjiang Beixin RoadBridge |
| Shenyang Blue vs. Kuangda Technology Group | Shenyang Blue vs. Sinofibers Technology Co | Shenyang Blue vs. China World Trade | Shenyang Blue vs. Changchun UP Optotech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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