Correlation Between Weihai Honglin and Changchun BCHT
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By analyzing existing cross correlation between Weihai Honglin Electronic and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Changchun BCHT.
Diversification Opportunities for Weihai Honglin and Changchun BCHT
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weihai and Changchun is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Changchun BCHT go up and down completely randomly.
Pair Corralation between Weihai Honglin and Changchun BCHT
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 2.54 times more return on investment than Changchun BCHT. However, Weihai Honglin is 2.54 times more volatile than Changchun BCHT Biotechnology. It trades about 0.15 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.44 per unit of risk. If you would invest 1,423 in Weihai Honglin Electronic on October 30, 2024 and sell it today you would earn a total of 184.00 from holding Weihai Honglin Electronic or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Changchun BCHT Biote |
Weihai Honglin and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Changchun BCHT
The main advantage of trading using opposite Weihai Honglin and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Anhui Transport Consulting | Weihai Honglin vs. Duzhe Publishing Media | Weihai Honglin vs. ZYF Lopsking Aluminum | Weihai Honglin vs. Sino Platinum Metals Co |
| Changchun BCHT vs. GreenTech Environmental Co | Changchun BCHT vs. Shanghai CEO Environmental | Changchun BCHT vs. Cansino Biologics | Changchun BCHT vs. Shenzhen MYS Environmental |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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