Correlation Between SSAW Hotels and Changchun Engley
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By analyzing existing cross correlation between SSAW Hotels Resorts and Changchun Engley Automobile, you can compare the effects of market volatilities on SSAW Hotels and Changchun Engley 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 SSAW Hotels with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Changchun Engley.
Diversification Opportunities for SSAW Hotels and Changchun Engley
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SSAW and Changchun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Changchun Engley go up and down completely randomly.
Pair Corralation between SSAW Hotels and Changchun Engley
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to generate 1.55 times more return on investment than Changchun Engley. However, SSAW Hotels is 1.55 times more volatile than Changchun Engley Automobile. It trades about -0.08 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.21 per unit of risk. If you would invest 2,087 in SSAW Hotels Resorts on November 1, 2024 and sell it today you would lose (129.00) from holding SSAW Hotels Resorts or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Changchun Engley Automobile
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Changchun Engley Aut |
SSAW Hotels and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Changchun Engley
The main advantage of trading using opposite SSAW Hotels and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Changchun Engley 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 Engley will offset losses from the drop in Changchun Engley's long position.| SSAW Hotels vs. Caihong Display Devices | SSAW Hotels vs. Beijing Seeyon Internet | SSAW Hotels vs. Unisplendour Corp | SSAW Hotels vs. Guangzhou Zhujiang Brewery |
| Changchun Engley vs. SSAW Hotels Resorts | Changchun Engley vs. Winner Medical Co | Changchun Engley vs. Tinavi Medical Technologies | Changchun Engley vs. Shanghai Yanpu Metal |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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