Correlation Between Chongqing Road and Sinocelltech
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By analyzing existing cross correlation between Chongqing Road Bridge and Sinocelltech Group, you can compare the effects of market volatilities on Chongqing Road and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Sinocelltech.
Diversification Opportunities for Chongqing Road and Sinocelltech
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Sinocelltech is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Chongqing Road i.e., Chongqing Road and Sinocelltech go up and down completely randomly.
Pair Corralation between Chongqing Road and Sinocelltech
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to under-perform the Sinocelltech. In addition to that, Chongqing Road is 1.23 times more volatile than Sinocelltech Group. It trades about -0.03 of its total potential returns per unit of risk. Sinocelltech Group is currently generating about 0.06 per unit of volatility. If you would invest 3,795 in Sinocelltech Group on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Sinocelltech Group or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Sinocelltech Group
Performance |
| Timeline |
| Chongqing Road Bridge |
| Sinocelltech Group |
Chongqing Road and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Sinocelltech
The main advantage of trading using opposite Chongqing Road and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Chongqing Road vs. Orinko Advanced Plastics | Chongqing Road vs. Levima Advanced Materials | Chongqing Road vs. Super Dragon Engineering Plastics | Chongqing Road vs. Hengkang Medical Group |
| Sinocelltech vs. PetroChina Co Ltd | Sinocelltech vs. China Mobile Limited | Sinocelltech vs. CNOOC Limited | Sinocelltech vs. Ping An Insurance |
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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