Correlation Between Chongqing Brewery and Saurer Intelligent
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By analyzing existing cross correlation between Chongqing Brewery Co and Saurer Intelligent Technology, you can compare the effects of market volatilities on Chongqing Brewery and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Saurer Intelligent.
Diversification Opportunities for Chongqing Brewery and Saurer Intelligent
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Saurer is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Saurer Intelligent
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.47 times less risky than Saurer Intelligent. The stock trades about -0.03 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Saurer Intelligent Technology on September 4, 2024 and sell it today you would earn a total of 87.00 from holding Saurer Intelligent Technology or generate 57.62% 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. Saurer Intelligent Technology
Performance |
| Timeline |
| Chongqing Brewery |
| Saurer Intelligent |
Chongqing Brewery and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Saurer Intelligent
The main advantage of trading using opposite Chongqing Brewery and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Chongqing Brewery vs. Beijing Kaiwen Education | Chongqing Brewery vs. Anhui Huaren Health | Chongqing Brewery vs. Hangzhou Coco Healthcare | Chongqing Brewery vs. Xinhua Winshare Publishing |
| Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. China Construction Bank | Saurer Intelligent vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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