Correlation Between Chongqing Shunbo and East Money
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and East Money Information, you can compare the effects of market volatilities on Chongqing Shunbo and East Money 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 Shunbo with a short position of East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and East Money.
Diversification Opportunities for Chongqing Shunbo and East Money
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and East is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information and Chongqing Shunbo 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 Shunbo Aluminum are associated (or correlated) with East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and East Money go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and East Money
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 0.81 times more return on investment than East Money. However, Chongqing Shunbo Aluminum is 1.23 times less risky than East Money. It trades about -0.01 of its potential returns per unit of risk. East Money Information is currently generating about -0.15 per unit of risk. If you would invest 669.00 in Chongqing Shunbo Aluminum on October 30, 2024 and sell it today you would lose (14.00) from holding Chongqing Shunbo Aluminum or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. East Money Information
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| East Money Information |
Chongqing Shunbo and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and East Money
The main advantage of trading using opposite Chongqing Shunbo and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Shandong Gold Mining |
| East Money vs. Kailong High Technology | East Money vs. Eyebright Medical Technology | East Money vs. Caihong Display Devices | East Money vs. Kuang Chi Technologies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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