Correlation Between Chongqing Road and Smartgiant Technology
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By analyzing existing cross correlation between Chongqing Road Bridge and Smartgiant Technology Co, you can compare the effects of market volatilities on Chongqing Road and Smartgiant Technology 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 Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Smartgiant Technology.
Diversification Opportunities for Chongqing Road and Smartgiant Technology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Smartgiant is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology 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 Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Chongqing Road i.e., Chongqing Road and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Chongqing Road and Smartgiant Technology
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to under-perform the Smartgiant Technology. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Road Bridge is 1.41 times less risky than Smartgiant Technology. The stock trades about -0.14 of its potential returns per unit of risk. The Smartgiant Technology Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 4,160 in Smartgiant Technology Co on October 25, 2024 and sell it today you would lose (240.00) from holding Smartgiant Technology Co or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Smartgiant Technology Co
Performance |
| Timeline |
| Chongqing Road Bridge |
| Smartgiant Technology |
Chongqing Road and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Smartgiant Technology
The main advantage of trading using opposite Chongqing Road and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Chongqing Road vs. Jiangsu Financial Leasing | Chongqing Road vs. Sinomach Automobile Co | Chongqing Road vs. Iat Automobile Technology | Chongqing Road vs. Ningbo Fangzheng Automobile |
| Smartgiant Technology vs. Kweichow Moutai Co | Smartgiant Technology vs. Contemporary Amperex Technology | Smartgiant Technology vs. Beijing Roborock Technology | Smartgiant Technology vs. BYD Co Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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