Correlation Between East Money and Chongqing Landai
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By analyzing existing cross correlation between East Money Information and Chongqing Landai Powertrain, you can compare the effects of market volatilities on East Money and Chongqing Landai 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 East Money with a short position of Chongqing Landai. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Chongqing Landai.
Diversification Opportunities for East Money and Chongqing Landai
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between East and Chongqing is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Chongqing Landai Powertrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Landai Pow and East Money 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 East Money Information are associated (or correlated) with Chongqing Landai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Landai Pow has no effect on the direction of East Money i.e., East Money and Chongqing Landai go up and down completely randomly.
Pair Corralation between East Money and Chongqing Landai
Assuming the 90 days trading horizon East Money Information is expected to under-perform the Chongqing Landai. But the stock apears to be less risky and, when comparing its historical volatility, East Money Information is 1.69 times less risky than Chongqing Landai. The stock trades about -0.15 of its potential returns per unit of risk. The Chongqing Landai Powertrain is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 909.00 in Chongqing Landai Powertrain on October 25, 2024 and sell it today you would earn a total of 98.00 from holding Chongqing Landai Powertrain or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
East Money Information vs. Chongqing Landai Powertrain
Performance |
| Timeline |
| East Money Information |
| Chongqing Landai Pow |
East Money and Chongqing Landai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Chongqing Landai
The main advantage of trading using opposite East Money and Chongqing Landai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money position performs unexpectedly, Chongqing Landai 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 Landai will offset losses from the drop in Chongqing Landai's long position.| East Money vs. Xiangyu Medical Co | East Money vs. Allgens Medical Technology | East Money vs. Kontour Medical Technology | East Money vs. PKU HealthCare Corp |
| Chongqing Landai vs. CICC Fund Management | Chongqing Landai vs. China Asset Management | Chongqing Landai vs. Leyard Optoelectronic | Chongqing Landai vs. Huaxia Fund Management |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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