Correlation Between Puyang Huicheng and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Puyang Huicheng Electronic and Chongqing Changan Automobile, you can compare the effects of market volatilities on Puyang Huicheng 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 Puyang Huicheng with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and Chongqing Changan.
Diversification Opportunities for Puyang Huicheng and Chongqing Changan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Puyang and Chongqing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Puyang Huicheng 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 Puyang Huicheng Electronic 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 Puyang Huicheng i.e., Puyang Huicheng and Chongqing Changan go up and down completely randomly.
Pair Corralation between Puyang Huicheng and Chongqing Changan
Assuming the 90 days trading horizon Puyang Huicheng Electronic is expected to generate 1.17 times more return on investment than Chongqing Changan. However, Puyang Huicheng is 1.17 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 0.02 per unit of risk. If you would invest 1,630 in Puyang Huicheng Electronic on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Puyang Huicheng Electronic or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Puyang Huicheng Elec |
| Chongqing Changan |
Puyang Huicheng and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and Chongqing Changan
The main advantage of trading using opposite Puyang Huicheng and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng 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.| Puyang Huicheng vs. GRG Banking Equipment | Puyang Huicheng vs. Jinhe Biotechnology Co | Puyang Huicheng vs. Industrial Bank Co | Puyang Huicheng vs. Kuangda Technology Group |
| Chongqing Changan vs. China State Construction | Chongqing Changan vs. China Merchants Shekou | Chongqing Changan vs. Huafa Industrial Co | Chongqing Changan vs. China International Capital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |