Correlation Between Changchun and Hygon Information
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By analyzing existing cross correlation between Changchun UP Optotech and Hygon Information Technology, you can compare the effects of market volatilities on Changchun and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Hygon Information.
Diversification Opportunities for Changchun and Hygon Information
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and Hygon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Changchun i.e., Changchun and Hygon Information go up and down completely randomly.
Pair Corralation between Changchun and Hygon Information
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 0.68 times more return on investment than Hygon Information. However, Changchun UP Optotech is 1.46 times less risky than Hygon Information. It trades about -0.05 of its potential returns per unit of risk. Hygon Information Technology is currently generating about -0.2 per unit of risk. If you would invest 3,980 in Changchun UP Optotech on October 28, 2024 and sell it today you would lose (130.00) from holding Changchun UP Optotech or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Hygon Information Technology
Performance |
| Timeline |
| Changchun UP Optotech |
| Hygon Information |
Changchun and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Hygon Information
The main advantage of trading using opposite Changchun and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Changchun vs. Runjian Communication Co | Changchun vs. Huizhou Speed Wireless | Changchun vs. Haima Automobile Group | Changchun vs. Quectel Wireless Solutions |
| Hygon Information vs. Lotus Health Group | Hygon Information vs. Meinian Onehealth Healthcare | Hygon Information vs. Hengli Petrochemical Co | Hygon Information vs. Goodwill E Health |
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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