Correlation Between Chongqing Sulian and Zhongshan Public
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Zhongshan Public Utilities, you can compare the effects of market volatilities on Chongqing Sulian and Zhongshan Public 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 Chongqing Sulian with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Zhongshan Public.
Diversification Opportunities for Chongqing Sulian and Zhongshan Public
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Zhongshan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Chongqing Sulian 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 Chongqing Sulian Plastic are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Zhongshan Public go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Zhongshan Public
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to under-perform the Zhongshan Public. In addition to that, Chongqing Sulian is 2.01 times more volatile than Zhongshan Public Utilities. It trades about -0.14 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.09 per unit of volatility. If you would invest 909.00 in Zhongshan Public Utilities on September 14, 2024 and sell it today you would earn a total of 26.00 from holding Zhongshan Public Utilities or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Zhongshan Public Uti |
Chongqing Sulian and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Zhongshan Public
The main advantage of trading using opposite Chongqing Sulian and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Chongqing Sulian vs. BeiGene | Chongqing Sulian vs. Kweichow Moutai Co | Chongqing Sulian vs. Beijing Roborock Technology | Chongqing Sulian vs. G bits Network Technology |
| Zhongshan Public vs. Biwin Storage Technology | Zhongshan Public vs. PetroChina Co Ltd | Zhongshan Public vs. Industrial and Commercial | Zhongshan Public vs. China Construction Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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