Correlation Between Songz Automobile and Chongqing Gas
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By analyzing existing cross correlation between Songz Automobile Air and Chongqing Gas Grp, you can compare the effects of market volatilities on Songz Automobile and Chongqing Gas 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 Songz Automobile with a short position of Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Chongqing Gas.
Diversification Opportunities for Songz Automobile and Chongqing Gas
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Chongqing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of Songz Automobile i.e., Songz Automobile and Chongqing Gas go up and down completely randomly.
Pair Corralation between Songz Automobile and Chongqing Gas
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 1.9 times more return on investment than Chongqing Gas. However, Songz Automobile is 1.9 times more volatile than Chongqing Gas Grp. It trades about 0.08 of its potential returns per unit of risk. Chongqing Gas Grp is currently generating about -0.17 per unit of risk. If you would invest 669.00 in Songz Automobile Air on October 23, 2024 and sell it today you would earn a total of 22.00 from holding Songz Automobile Air or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Songz Automobile Air vs. Chongqing Gas Grp
Performance |
| Timeline |
| Songz Automobile Air |
| Chongqing Gas Grp |
Songz Automobile and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Chongqing Gas
The main advantage of trading using opposite Songz Automobile and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| Songz Automobile vs. Hubei Geoway Investment | Songz Automobile vs. Zhangjiagang Freetrade Science | Songz Automobile vs. Beijing Mainstreets Investment | Songz Automobile vs. Xiandai Investment Co |
| Chongqing Gas vs. China Publishing Media | Chongqing Gas vs. Muyuan Foodstuff Co | Chongqing Gas vs. Thinkingdom Media Group | Chongqing Gas vs. Hengdian Entertainment 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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