Correlation Between Guizhou Chanhen and Shanghai CEO
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Shanghai CEO Environmental, you can compare the effects of market volatilities on Guizhou Chanhen and Shanghai CEO 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 Guizhou Chanhen with a short position of Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Shanghai CEO.
Diversification Opportunities for Guizhou Chanhen and Shanghai CEO
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and Shanghai is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Shanghai CEO go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Shanghai CEO
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Shanghai CEO. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou Chanhen Chemical is 18.36 times less risky than Shanghai CEO. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,277 in Shanghai CEO Environmental on October 11, 2024 and sell it today you would lose (1,452) from holding Shanghai CEO Environmental or give up 63.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Shanghai CEO Environ |
Guizhou Chanhen and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Shanghai CEO
The main advantage of trading using opposite Guizhou Chanhen and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Guizhou Chanhen vs. Fujian Longzhou Transportation | Guizhou Chanhen vs. China Reform Health | Guizhou Chanhen vs. Chongqing Road Bridge | Guizhou Chanhen vs. Jinhui Liquor Co |
| Shanghai CEO vs. China Life Insurance | Shanghai CEO vs. Beijing Jiaman Dress | Shanghai CEO vs. Western Metal Materials | Shanghai CEO vs. Beijing HuaYuanYiTong Thermal |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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