Correlation Between Chengdu Spaceon and Changchun Engley
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Changchun Engley Automobile, you can compare the effects of market volatilities on Chengdu Spaceon and Changchun Engley 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 Chengdu Spaceon with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Changchun Engley.
Diversification Opportunities for Chengdu Spaceon and Changchun Engley
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Changchun is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Changchun Engley go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Changchun Engley
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.98 times more return on investment than Changchun Engley. However, Chengdu Spaceon Electronics is 1.02 times less risky than Changchun Engley. It trades about 0.0 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.02 per unit of risk. If you would invest 1,735 in Chengdu Spaceon Electronics on October 12, 2024 and sell it today you would lose (228.00) from holding Chengdu Spaceon Electronics or give up 13.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Changchun Engley Automobile
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Changchun Engley Aut |
Chengdu Spaceon and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Changchun Engley
The main advantage of trading using opposite Chengdu Spaceon and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Chengdu Spaceon vs. Lutian Machinery Co | Chengdu Spaceon vs. Jiahe Foods Industry | Chengdu Spaceon vs. Jinlong Machinery Electronic | Chengdu Spaceon vs. Shenzhen Zhongzhuang Construction |
| Changchun Engley vs. Chengdu Spaceon Electronics | Changchun Engley vs. Rising Nonferrous Metals | Changchun Engley vs. Innovative Medical Management | Changchun Engley vs. Shanghai CEO Environmental |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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