Correlation Between Chongqing Shunbo and 360 Security
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and 360 Security Technology, you can compare the effects of market volatilities on Chongqing Shunbo and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and 360 Security.
Diversification Opportunities for Chongqing Shunbo and 360 Security
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and 360 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and 360 Security go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and 360 Security
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 0.42 times more return on investment than 360 Security. However, Chongqing Shunbo Aluminum is 2.38 times less risky than 360 Security. It trades about -0.03 of its potential returns per unit of risk. 360 Security Technology is currently generating about -0.12 per unit of risk. If you would invest 644.00 in Chongqing Shunbo Aluminum on December 1, 2024 and sell it today you would lose (7.00) from holding Chongqing Shunbo Aluminum or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. 360 Security Technology
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| 360 Security Technology |
Chongqing Shunbo and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and 360 Security
The main advantage of trading using opposite Chongqing Shunbo and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| Chongqing Shunbo vs. PKU HealthCare Corp | Chongqing Shunbo vs. Servyou Software Group | Chongqing Shunbo vs. Digiwin Software Co | Chongqing Shunbo vs. Impulse Qingdao Health |
| 360 Security vs. Tianjin Silvery Dragon | 360 Security vs. Xiamen Bank Co | 360 Security vs. Fujian Oriental Silver | 360 Security vs. Guangdong Silvere Sci |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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