Correlation Between Guangdong Wens and Changchun BCHT
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Guangdong Wens and Changchun BCHT 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 Guangdong Wens with a short position of Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Changchun BCHT.
Diversification Opportunities for Guangdong Wens and Changchun BCHT
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Changchun is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote and Guangdong Wens 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 Guangdong Wens Foodstuff are associated (or correlated) with Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Changchun BCHT go up and down completely randomly.
Pair Corralation between Guangdong Wens and Changchun BCHT
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to generate 0.65 times more return on investment than Changchun BCHT. However, Guangdong Wens Foodstuff is 1.55 times less risky than Changchun BCHT. It trades about -0.17 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.28 per unit of risk. If you would invest 1,678 in Guangdong Wens Foodstuff on October 23, 2024 and sell it today you would lose (70.00) from holding Guangdong Wens Foodstuff or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Changchun BCHT Biote |
Guangdong Wens and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Changchun BCHT
The main advantage of trading using opposite Guangdong Wens and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Changchun BCHT 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 BCHT will offset losses from the drop in Changchun BCHT's long position.| Guangdong Wens vs. Ningxia Younglight Chemicals | Guangdong Wens vs. Changchun UP Optotech | Guangdong Wens vs. Sharetronic Data Technology | Guangdong Wens vs. Hubei Xingfa Chemicals |
| Changchun BCHT vs. Hubei Xingfa Chemicals | Changchun BCHT vs. Ningxia Younglight Chemicals | Changchun BCHT vs. Porton Fine Chemicals | Changchun BCHT vs. Angang Steel 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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