Correlation Between Chongqing Road and Guangzhou Ruoyuchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Road Bridge and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Chongqing Road and Guangzhou Ruoyuchen 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 Road with a short position of Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Guangzhou Ruoyuchen.
Diversification Opportunities for Chongqing Road and Guangzhou Ruoyuchen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen and Chongqing Road 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 Road Bridge are associated (or correlated) with Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Chongqing Road i.e., Chongqing Road and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Chongqing Road and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to under-perform the Guangzhou Ruoyuchen. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Road Bridge is 1.32 times less risky than Guangzhou Ruoyuchen. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou Ruoyuchen Information is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,490 in Guangzhou Ruoyuchen Information on August 29, 2024 and sell it today you would earn a total of 590.00 from holding Guangzhou Ruoyuchen Information or generate 39.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Chongqing Road Bridge |
| Guangzhou Ruoyuchen |
Chongqing Road and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Guangzhou Ruoyuchen
The main advantage of trading using opposite Chongqing Road and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Chongqing Road vs. Aofu Environmental Technology | Chongqing Road vs. Everdisplay Optronics Shanghai | Chongqing Road vs. Lander Sports Development | Chongqing Road vs. Guangzhou Ruoyuchen Information |
| Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. China Construction Bank | Guangzhou Ruoyuchen vs. Bank of China |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |