Correlation Between Integrated Electronic and Changchun BCHT
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By analyzing existing cross correlation between Integrated Electronic Systems and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Integrated Electronic and Changchun BCHT 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 Integrated Electronic with a short position of Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Changchun BCHT.
Diversification Opportunities for Integrated Electronic and Changchun BCHT
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integrated and Changchun is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Changchun BCHT go up and down completely randomly.
Pair Corralation between Integrated Electronic and Changchun BCHT
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.61 times more return on investment than Changchun BCHT. However, Integrated Electronic is 1.61 times more volatile than Changchun BCHT Biotechnology. It trades about -0.15 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.44 per unit of risk. If you would invest 725.00 in Integrated Electronic Systems on October 30, 2024 and sell it today you would lose (67.00) from holding Integrated Electronic Systems or give up 9.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Integrated Electronic |
| Changchun BCHT Biote |
Integrated Electronic and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Changchun BCHT
The main advantage of trading using opposite Integrated Electronic and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.The idea behind Integrated Electronic Systems and Changchun BCHT Biotechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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