Correlation Between Chongqing Shunbo and Vohringer Home
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Vohringer Home Technology, you can compare the effects of market volatilities on Chongqing Shunbo and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Vohringer Home.
Diversification Opportunities for Chongqing Shunbo and Vohringer Home
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Vohringer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Vohringer Home go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Vohringer Home
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to under-perform the Vohringer Home. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Shunbo Aluminum is 1.23 times less risky than Vohringer Home. The stock trades about -0.02 of its potential returns per unit of risk. The Vohringer Home Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Vohringer Home Technology on September 25, 2024 and sell it today you would lose (28.00) from holding Vohringer Home Technology or give up 5.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Vohringer Home Technology
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Vohringer Home Technology |
Chongqing Shunbo and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Vohringer Home
The main advantage of trading using opposite Chongqing Shunbo and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home's long position.| Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Rongsheng Petrochemical Co |
| Vohringer Home vs. Zijin Mining Group | Vohringer Home vs. Wanhua Chemical Group | Vohringer Home vs. Baoshan Iron Steel | Vohringer Home vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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