Correlation Between Shantou Wanshun and Chongqing Brewery
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By analyzing existing cross correlation between Shantou Wanshun Package and Chongqing Brewery Co, you can compare the effects of market volatilities on Shantou Wanshun and Chongqing Brewery 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 Shantou Wanshun with a short position of Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Chongqing Brewery.
Diversification Opportunities for Shantou Wanshun and Chongqing Brewery
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantou and Chongqing is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Chongqing Brewery
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the Chongqing Brewery. In addition to that, Shantou Wanshun is 1.31 times more volatile than Chongqing Brewery Co. It trades about -0.04 of its total potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.13 per unit of volatility. If you would invest 6,472 in Chongqing Brewery Co on September 14, 2024 and sell it today you would earn a total of 293.00 from holding Chongqing Brewery Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Chongqing Brewery Co
Performance |
| Timeline |
| Shantou Wanshun Package |
| Chongqing Brewery |
Shantou Wanshun and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Chongqing Brewery
The main advantage of trading using opposite Shantou Wanshun and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Shandong Gold Mining |
| Chongqing Brewery vs. Jiaozuo Wanfang Aluminum | Chongqing Brewery vs. Keeson Technology Corp | Chongqing Brewery vs. Iat Automobile Technology | Chongqing Brewery vs. Holitech Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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