Correlation Between Longmaster Information and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longmaster Information Tech and Chongqing Changan Automobile, you can compare the effects of market volatilities on Longmaster Information and Chongqing Changan 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 Longmaster Information with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Chongqing Changan.
Diversification Opportunities for Longmaster Information and Chongqing Changan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longmaster and Chongqing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Longmaster Information i.e., Longmaster Information and Chongqing Changan go up and down completely randomly.
Pair Corralation between Longmaster Information and Chongqing Changan
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 2.57 times more return on investment than Chongqing Changan. However, Longmaster Information is 2.57 times more volatile than Chongqing Changan Automobile. It trades about 0.02 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.03 per unit of risk. If you would invest 1,443 in Longmaster Information Tech on August 29, 2024 and sell it today you would earn a total of 49.00 from holding Longmaster Information Tech or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Longmaster Information |
| Chongqing Changan |
Longmaster Information and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Chongqing Changan
The main advantage of trading using opposite Longmaster Information and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Chongqing Changan 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 Changan will offset losses from the drop in Chongqing Changan's long position.| Longmaster Information vs. Ming Yang Smart | Longmaster Information vs. 159681 | Longmaster Information vs. 159005 | Longmaster Information vs. Loctek Ergonomic Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |