Correlation Between Changchun and Hunan Airbluer
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By analyzing existing cross correlation between Changchun UP Optotech and Hunan Airbluer Environmental, you can compare the effects of market volatilities on Changchun and Hunan Airbluer 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 Hunan Airbluer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Hunan Airbluer.
Diversification Opportunities for Changchun and Hunan Airbluer
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Hunan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Hunan Airbluer Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Airbluer Envir 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 Hunan Airbluer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Airbluer Envir has no effect on the direction of Changchun i.e., Changchun and Hunan Airbluer go up and down completely randomly.
Pair Corralation between Changchun and Hunan Airbluer
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the Hunan Airbluer. But the stock apears to be less risky and, when comparing its historical volatility, Changchun UP Optotech is 1.07 times less risky than Hunan Airbluer. The stock trades about -0.08 of its potential returns per unit of risk. The Hunan Airbluer Environmental is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,730 in Hunan Airbluer Environmental on October 16, 2024 and sell it today you would earn a total of 348.00 from holding Hunan Airbluer Environmental or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Hunan Airbluer Environmental
Performance |
| Timeline |
| Changchun UP Optotech |
| Hunan Airbluer Envir |
Changchun and Hunan Airbluer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Hunan Airbluer
The main advantage of trading using opposite Changchun and Hunan Airbluer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Hunan Airbluer 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 Hunan Airbluer will offset losses from the drop in Hunan Airbluer's long position.| Changchun vs. Tinavi Medical Technologies | Changchun vs. Kontour Medical Technology | Changchun vs. JuneYao Dairy Co | Changchun vs. Chison Medical Technologies |
| Hunan Airbluer vs. Shenzhen MYS Environmental | Hunan Airbluer vs. AVIC Fund Management | Hunan Airbluer vs. Rongan Property Co | Hunan Airbluer vs. Haoxiangni Jujube 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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