Correlation Between Shandong Mining and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Chongqing Changan Automobile, you can compare the effects of market volatilities on Shandong Mining and Chongqing Changan 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 Shandong Mining with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Chongqing Changan.
Diversification Opportunities for Shandong Mining and Chongqing Changan
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Chongqing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Shandong Mining 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 Shandong Mining Machinery are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Shandong Mining i.e., Shandong Mining and Chongqing Changan go up and down completely randomly.
Pair Corralation between Shandong Mining and Chongqing Changan
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to under-perform the Chongqing Changan. In addition to that, Shandong Mining is 2.85 times more volatile than Chongqing Changan Automobile. It trades about -0.51 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.32 per unit of volatility. If you would invest 1,407 in Chongqing Changan Automobile on October 9, 2024 and sell it today you would lose (136.00) from holding Chongqing Changan Automobile or give up 9.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Mining Machinery vs. Chongqing Changan Automobile
Performance |
Timeline |
Shandong Mining Machinery |
Chongqing Changan |
Shandong Mining and Chongqing Changan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Mining and Chongqing Changan
The main advantage of trading using opposite Shandong Mining and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Chongqing Changan 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 Changan will offset losses from the drop in Chongqing Changan's long position.Shandong Mining vs. Sportsoul Co Ltd | Shandong Mining vs. Hainan Haiqi Transportation | Shandong Mining vs. Runjian Communication Co | Shandong Mining vs. Bank of Communications |
Chongqing Changan vs. Everdisplay Optronics Shanghai | Chongqing Changan vs. King Strong New Material | Chongqing Changan vs. Beijing Shunxin Agriculture | Chongqing Changan vs. Sportsoul Co Ltd |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stocks Directory Find actively traded stocks across global markets |