Correlation Between Chongqing Shunbo and Ye Chiu
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Ye Chiu Metal, you can compare the effects of market volatilities on Chongqing Shunbo and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Ye Chiu.
Diversification Opportunities for Chongqing Shunbo and Ye Chiu
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and 601388 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Ye Chiu go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Ye Chiu
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to under-perform the Ye Chiu. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Shunbo Aluminum is 1.03 times less risky than Ye Chiu. The stock trades about -0.03 of its potential returns per unit of risk. The Ye Chiu Metal is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Ye Chiu Metal on October 14, 2024 and sell it today you would lose (127.00) from holding Ye Chiu Metal or give up 35.28% 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. Ye Chiu Metal
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Ye Chiu Metal |
Chongqing Shunbo and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Ye Chiu
The main advantage of trading using opposite Chongqing Shunbo and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Chongqing Shunbo vs. Harbin Air Conditioning | Chongqing Shunbo vs. Sunwave Communications Co | Chongqing Shunbo vs. Runjian Communication Co | Chongqing Shunbo vs. Cansino Biologics |
| Ye Chiu vs. Chongqing Shunbo Aluminum | Ye Chiu vs. Ningbo Fangzheng Automobile | Ye Chiu vs. Heilongjiang Transport Development | Ye Chiu vs. Aba Chemicals Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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