Correlation Between Chongqing Brewery and Shanghai Action
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By analyzing existing cross correlation between Chongqing Brewery Co and Shanghai Action Education, you can compare the effects of market volatilities on Chongqing Brewery and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Shanghai Action.
Diversification Opportunities for Chongqing Brewery and Shanghai Action
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chongqing and Shanghai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Shanghai Action go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Shanghai Action
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Shanghai Action. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.21 times less risky than Shanghai Action. The stock trades about -0.27 of its potential returns per unit of risk. The Shanghai Action Education is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,653 in Shanghai Action Education on October 11, 2024 and sell it today you would earn a total of 90.00 from holding Shanghai Action Education or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Shanghai Action Education
Performance |
| Timeline |
| Chongqing Brewery |
| Shanghai Action Education |
Chongqing Brewery and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Shanghai Action
The main advantage of trading using opposite Chongqing Brewery and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Chongqing Brewery vs. ROPEOK Technology Group | Chongqing Brewery vs. Olympic Circuit Technology | Chongqing Brewery vs. Bangyan Technology Co | Chongqing Brewery vs. Maccura Biotechnology Co |
| Shanghai Action vs. Xinxiang Chemical Fiber | Shanghai Action vs. Chongqing Brewery Co | Shanghai Action vs. GRINM Semiconductor Materials | Shanghai Action vs. Longxing Chemical Stock |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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