Correlation Between Longmaster Information and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longmaster Information Tech and Changchun Faway Automobile, you can compare the effects of market volatilities on Longmaster Information and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Changchun Faway.
Diversification Opportunities for Longmaster Information and Changchun Faway
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longmaster and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Longmaster Information i.e., Longmaster Information and Changchun Faway go up and down completely randomly.
Pair Corralation between Longmaster Information and Changchun Faway
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 2.1 times more return on investment than Changchun Faway. However, Longmaster Information is 2.1 times more volatile than Changchun Faway Automobile. It trades about 0.03 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of risk. If you would invest 1,397 in Longmaster Information Tech on September 2, 2024 and sell it today you would earn a total of 184.00 from holding Longmaster Information Tech or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Changchun Faway Automobile
Performance |
| Timeline |
| Longmaster Information |
| Changchun Faway Auto |
Longmaster Information and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Changchun Faway
The main advantage of trading using opposite Longmaster Information and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Changchun Faway 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 Faway will offset losses from the drop in Changchun Faway's long position.| Longmaster Information vs. Chengdu Kanghua Biological | Longmaster Information vs. Beijing Wantai Biological | Longmaster Information vs. Aluminum Corp of | Longmaster Information vs. COL Digital Publishing |
| Changchun Faway vs. Sichuan Yahua Industrial | Changchun Faway vs. Longmaster Information Tech | Changchun Faway vs. ButOne Information Corp | Changchun Faway vs. Shenzhen Shenbao Industrial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |