Correlation Between Qingdao Choho and Changchun Engley
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By analyzing existing cross correlation between Qingdao Choho Industrial and Changchun Engley Automobile, you can compare the effects of market volatilities on Qingdao Choho and Changchun Engley 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 Qingdao Choho with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Changchun Engley.
Diversification Opportunities for Qingdao Choho and Changchun Engley
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Changchun is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut and Qingdao Choho 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 Qingdao Choho Industrial are associated (or correlated) with Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Changchun Engley go up and down completely randomly.
Pair Corralation between Qingdao Choho and Changchun Engley
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 1.11 times more return on investment than Changchun Engley. However, Qingdao Choho is 1.11 times more volatile than Changchun Engley Automobile. It trades about 0.06 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about 0.03 per unit of risk. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Changchun Engley Automobile
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Changchun Engley Aut |
Qingdao Choho and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Changchun Engley
The main advantage of trading using opposite Qingdao Choho and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
| Changchun Engley vs. JCHX Mining Management | Changchun Engley vs. Iat Automobile Technology | Changchun Engley vs. Chengtun Mining Group | Changchun Engley vs. Hainan Mining Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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