Correlation Between Chongqing Brewery and Central China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Central China Land, you can compare the effects of market volatilities on Chongqing Brewery and Central China 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 Brewery with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Central China.
Diversification Opportunities for Chongqing Brewery and Central China
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Central is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and Chongqing Brewery 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 Brewery Co are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Central China go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Central China
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to generate 0.88 times more return on investment than Central China. However, Chongqing Brewery Co is 1.13 times less risky than Central China. It trades about 0.1 of its potential returns per unit of risk. Central China Land is currently generating about -0.02 per unit of risk. If you would invest 5,926 in Chongqing Brewery Co on August 30, 2024 and sell it today you would earn a total of 250.00 from holding Chongqing Brewery Co or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Central China Land
Performance |
| Timeline |
| Chongqing Brewery |
| Central China Land |
Chongqing Brewery and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Central China
The main advantage of trading using opposite Chongqing Brewery and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Chongqing Brewery vs. Kweichow Moutai Co | Chongqing Brewery vs. G bits Network Technology | Chongqing Brewery vs. Beijing Roborock Technology | Chongqing Brewery vs. Central China Land |
| Central China vs. Duzhe Publishing Media | Central China vs. Changjiang Publishing Media | Central China vs. Ye Chiu Metal | Central China vs. Shenyang Huitian Thermal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |