Correlation Between Chongqing Brewery and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Chongqing Brewery Co and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Chongqing Brewery and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Chongqing Brewery and Zhengzhou Qianweiyangchu
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Zhengzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to generate 0.55 times more return on investment than Zhengzhou Qianweiyangchu. However, Chongqing Brewery Co is 1.82 times less risky than Zhengzhou Qianweiyangchu. It trades about 0.14 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.03 per unit of risk. If you would invest 6,063 in Chongqing Brewery Co on September 26, 2024 and sell it today you would earn a total of 354.00 from holding Chongqing Brewery Co or generate 5.84% 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. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Chongqing Brewery |
| Zhengzhou Qianweiyangchu |
Chongqing Brewery and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Chongqing Brewery and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Chongqing Brewery vs. BYD Co Ltd | Chongqing Brewery vs. China Mobile Limited | Chongqing Brewery vs. Agricultural Bank of | Chongqing Brewery vs. Industrial and Commercial |
| Zhengzhou Qianweiyangchu vs. Ming Yang Smart | Zhengzhou Qianweiyangchu vs. 159681 | Zhengzhou Qianweiyangchu vs. 159005 | Zhengzhou Qianweiyangchu vs. Loctek Ergonomic Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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