Correlation Between Chongqing Brewery and Zhongtong Guomai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Chongqing Brewery and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Zhongtong Guomai.
Diversification Opportunities for Chongqing Brewery and Zhongtong Guomai
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Zhongtong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Zhongtong Guomai
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Zhongtong Guomai. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.6 times less risky than Zhongtong Guomai. The stock trades about -0.03 of its potential returns per unit of risk. The Zhongtong Guomai Communication is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Zhongtong Guomai Communication on September 1, 2024 and sell it today you would earn a total of 656.00 from holding Zhongtong Guomai Communication or generate 141.08% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Chongqing Brewery |
| Zhongtong Guomai Com |
Chongqing Brewery and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Zhongtong Guomai
The main advantage of trading using opposite Chongqing Brewery and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Chongqing Brewery vs. BeiGene | Chongqing Brewery vs. Kweichow Moutai Co | Chongqing Brewery vs. Beijing Roborock Technology | Chongqing Brewery vs. G bits Network Technology |
| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |