Correlation Between Gansu Yasheng and Changchun High
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Changchun High New, you can compare the effects of market volatilities on Gansu Yasheng and Changchun High 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 Gansu Yasheng with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Changchun High.
Diversification Opportunities for Gansu Yasheng and Changchun High
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Gansu Yasheng 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 Gansu Yasheng Industrial are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and Changchun High go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Changchun High
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 1.09 times more return on investment than Changchun High. However, Gansu Yasheng is 1.09 times more volatile than Changchun High New. It trades about 0.14 of its potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of risk. If you would invest 281.00 in Gansu Yasheng Industrial on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Gansu Yasheng Industrial or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Changchun High New
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Changchun High New |
Gansu Yasheng and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Changchun High
The main advantage of trading using opposite Gansu Yasheng and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, Changchun High 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 High will offset losses from the drop in Changchun High's long position.| Gansu Yasheng vs. BeiGene | Gansu Yasheng vs. Kweichow Moutai Co | Gansu Yasheng vs. Beijing Roborock Technology | Gansu Yasheng vs. G bits Network Technology |
| Changchun High vs. V V Food | Changchun High vs. Spring Airlines Co | Changchun High vs. Anji Foodstuff Co | Changchun High vs. Jiangsu Phoenix Publishing |
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.
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