Correlation Between Chongqing Shunbo and Guizhou BroadcastingTV
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on Chongqing Shunbo and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Guizhou BroadcastingTV.
Diversification Opportunities for Chongqing Shunbo and Guizhou BroadcastingTV
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Guizhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Guizhou BroadcastingTV
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 0.83 times more return on investment than Guizhou BroadcastingTV. However, Chongqing Shunbo Aluminum is 1.2 times less risky than Guizhou BroadcastingTV. It trades about 0.08 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about 0.03 per unit of risk. If you would invest 647.00 in Chongqing Shunbo Aluminum on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Chongqing Shunbo Aluminum or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Guizhou BroadcastingTV Info
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Guizhou BroadcastingTV |
Chongqing Shunbo and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Guizhou BroadcastingTV
The main advantage of trading using opposite Chongqing Shunbo and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.| Chongqing Shunbo vs. Iat Automobile Technology | Chongqing Shunbo vs. Keeson Technology Corp | Chongqing Shunbo vs. XinJiang GuoTong Pipeline | Chongqing Shunbo vs. Sinomach Automobile Co |
| Guizhou BroadcastingTV vs. China Petroleum Chemical | Guizhou BroadcastingTV vs. PetroChina Co Ltd | Guizhou BroadcastingTV vs. China State Construction | Guizhou BroadcastingTV vs. China Railway Group |
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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |