Correlation Between Chongqing Sulian and Beijing Jiaman
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Beijing Jiaman Dress, you can compare the effects of market volatilities on Chongqing Sulian and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Beijing Jiaman.
Diversification Opportunities for Chongqing Sulian and Beijing Jiaman
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Beijing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Beijing Jiaman
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 2.75 times more return on investment than Beijing Jiaman. However, Chongqing Sulian is 2.75 times more volatile than Beijing Jiaman Dress. It trades about 0.16 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.07 per unit of risk. If you would invest 2,490 in Chongqing Sulian Plastic on November 3, 2024 and sell it today you would earn a total of 392.00 from holding Chongqing Sulian Plastic or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Beijing Jiaman Dress |
Chongqing Sulian and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Beijing Jiaman
The main advantage of trading using opposite Chongqing Sulian and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Chongqing Sulian vs. Jiaozuo Wanfang Aluminum | Chongqing Sulian vs. Cansino Biologics | Chongqing Sulian vs. Zhejiang Yongjin Metal | Chongqing Sulian vs. Wonders Information |
| Beijing Jiaman vs. Zhejiang Yinlun Machinery | Beijing Jiaman vs. Guangzhou Tinci Materials | Beijing Jiaman vs. Senci Electric Machinery | Beijing Jiaman vs. Shenzhen Zhongzhuang Construction |
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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