Correlation Between Changzhou Almaden and China Southern
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By analyzing existing cross correlation between Changzhou Almaden Co and China Southern SSE, you can compare the effects of market volatilities on Changzhou Almaden and China Southern 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 Changzhou Almaden with a short position of China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Almaden and China Southern.
Diversification Opportunities for Changzhou Almaden and China Southern
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changzhou and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Almaden Co and China Southern SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern SSE and Changzhou Almaden 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 Changzhou Almaden Co are associated (or correlated) with China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern SSE has no effect on the direction of Changzhou Almaden i.e., Changzhou Almaden and China Southern go up and down completely randomly.
Pair Corralation between Changzhou Almaden and China Southern
Assuming the 90 days trading horizon Changzhou Almaden is expected to generate 1.1 times less return on investment than China Southern. In addition to that, Changzhou Almaden is 1.2 times more volatile than China Southern SSE. It trades about 0.13 of its total potential returns per unit of risk. China Southern SSE is currently generating about 0.17 per unit of volatility. If you would invest 161.00 in China Southern SSE on September 12, 2024 and sell it today you would earn a total of 44.00 from holding China Southern SSE or generate 27.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changzhou Almaden Co vs. China Southern SSE
Performance |
| Timeline |
| Changzhou Almaden |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| China Southern SSE |
Changzhou Almaden and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changzhou Almaden and China Southern
The main advantage of trading using opposite Changzhou Almaden and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Almaden position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern's long position.| Changzhou Almaden vs. HaiXin Foods Co | Changzhou Almaden vs. Ping An Insurance | Changzhou Almaden vs. Marssenger Kitchenware Co | Changzhou Almaden vs. V V Food |
| China Southern vs. China Southern CSI | China Southern vs. China Universal CS | China Southern vs. China Southern CSI | China Southern vs. China Universal CSI |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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