Correlation Between Chongqing Landai and Smartgiant Technology
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By analyzing existing cross correlation between Chongqing Landai Powertrain and Smartgiant Technology Co, you can compare the effects of market volatilities on Chongqing Landai and Smartgiant Technology 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 Chongqing Landai with a short position of Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Landai and Smartgiant Technology.
Diversification Opportunities for Chongqing Landai and Smartgiant Technology
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Smartgiant is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Landai Powertrain and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology and Chongqing Landai 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 Chongqing Landai Powertrain are associated (or correlated) with Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Chongqing Landai i.e., Chongqing Landai and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Chongqing Landai and Smartgiant Technology
Assuming the 90 days trading horizon Chongqing Landai Powertrain is expected to under-perform the Smartgiant Technology. In addition to that, Chongqing Landai is 1.18 times more volatile than Smartgiant Technology Co. It trades about -0.4 of its total potential returns per unit of risk. Smartgiant Technology Co is currently generating about -0.17 per unit of volatility. If you would invest 4,555 in Smartgiant Technology Co on October 9, 2024 and sell it today you would lose (505.00) from holding Smartgiant Technology Co or give up 11.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Landai Powertrain vs. Smartgiant Technology Co
Performance |
| Timeline |
| Chongqing Landai Pow |
| Smartgiant Technology |
Chongqing Landai and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Landai and Smartgiant Technology
The main advantage of trading using opposite Chongqing Landai and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Landai position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Chongqing Landai vs. East Money Information | Chongqing Landai vs. Xinxiang Chemical Fiber | Chongqing Landai vs. Wuxi Chemical Equipment | Chongqing Landai vs. Liaoning Dingjide Petrochemical |
| Smartgiant Technology vs. China Building Material | Smartgiant Technology vs. Malion New Materials | Smartgiant Technology vs. Fujian Longzhou Transportation | Smartgiant Technology vs. Chongqing Road Bridge |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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