Correlation Between China Asset and Changchun Engley
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By analyzing existing cross correlation between China Asset Management and Changchun Engley Automobile, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Changchun Engley.
Diversification Opportunities for China Asset and Changchun Engley
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Changchun is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Changchun Engley go up and down completely randomly.
Pair Corralation between China Asset and Changchun Engley
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.49 times more return on investment than Changchun Engley. However, China Asset Management is 2.06 times less risky than Changchun Engley. It trades about 0.55 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.23 per unit of risk. If you would invest 320.00 in China Asset Management on October 7, 2024 and sell it today you would earn a total of 51.00 from holding China Asset Management or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Changchun Engley Automobile
Performance |
| Timeline |
| China Asset Management |
| Changchun Engley Aut |
China Asset and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Changchun Engley
The main advantage of trading using opposite China Asset and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Allwin Telecommunication Co | China Asset vs. TianJin 712 Communication | China Asset vs. Dr Peng Telecom | China Asset vs. Beijing Bewinner Communications |
| Changchun Engley vs. Agricultural Bank of | Changchun Engley vs. Postal Savings Bank | Changchun Engley vs. Gansu Jiu Steel | Changchun Engley vs. Shandong Mining Machinery |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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