Correlation Between Hangzhou Coco and Changchun BCHT
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Hangzhou Coco 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 Hangzhou Coco with a short position of Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Changchun BCHT.
Diversification Opportunities for Hangzhou Coco and Changchun BCHT
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Changchun is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare 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 Hangzhou Coco 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 Hangzhou Coco Healthcare 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 Hangzhou Coco i.e., Hangzhou Coco and Changchun BCHT go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Changchun BCHT
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to generate 1.13 times more return on investment than Changchun BCHT. However, Hangzhou Coco is 1.13 times more volatile than Changchun BCHT Biotechnology. It trades about 0.18 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about 0.08 per unit of risk. If you would invest 869.00 in Hangzhou Coco Healthcare on September 2, 2024 and sell it today you would earn a total of 90.00 from holding Hangzhou Coco Healthcare or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| Changchun BCHT Biote |
Hangzhou Coco and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and Changchun BCHT
The main advantage of trading using opposite Hangzhou Coco and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco 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.| Hangzhou Coco vs. Eastern Communications Co | Hangzhou Coco vs. Tianjin Hi Tech Development | Hangzhou Coco vs. Kuang Chi Technologies | Hangzhou Coco vs. Tianjin Pengling Rubber |
| Changchun BCHT vs. China Petroleum Chemical | Changchun BCHT vs. PetroChina Co Ltd | Changchun BCHT vs. China State Construction | Changchun BCHT vs. China Railway Group |
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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