Correlation Between Changchun and Hefei Metalforming
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun UP Optotech and Hefei Metalforming Mach, you can compare the effects of market volatilities on Changchun and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Hefei Metalforming.
Diversification Opportunities for Changchun and Hefei Metalforming
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Hefei is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Changchun i.e., Changchun and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Changchun and Hefei Metalforming
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 0.95 times more return on investment than Hefei Metalforming. However, Changchun UP Optotech is 1.06 times less risky than Hefei Metalforming. It trades about 0.05 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.03 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Changchun UP Optotech |
| Hefei Metalforming Mach |
Changchun and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Hefei Metalforming
The main advantage of trading using opposite Changchun and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec Co |
| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |