Correlation Between Xinhu Zhongbao and Changchun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinhu Zhongbao Co and Changchun UP Optotech, you can compare the effects of market volatilities on Xinhu Zhongbao and Changchun 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 Xinhu Zhongbao with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhu Zhongbao and Changchun.
Diversification Opportunities for Xinhu Zhongbao and Changchun
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhu and Changchun is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xinhu Zhongbao Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Xinhu Zhongbao 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 Xinhu Zhongbao Co are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Xinhu Zhongbao i.e., Xinhu Zhongbao and Changchun go up and down completely randomly.
Pair Corralation between Xinhu Zhongbao and Changchun
Assuming the 90 days trading horizon Xinhu Zhongbao Co is expected to under-perform the Changchun. But the stock apears to be less risky and, when comparing its historical volatility, Xinhu Zhongbao Co is 1.33 times less risky than Changchun. The stock trades about -0.03 of its potential returns per unit of risk. The Changchun UP Optotech is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,958 in Changchun UP Optotech on October 24, 2024 and sell it today you would lose (41.00) from holding Changchun UP Optotech or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhu Zhongbao Co vs. Changchun UP Optotech
Performance |
| Timeline |
| Xinhu Zhongbao |
| Changchun UP Optotech |
Xinhu Zhongbao and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhu Zhongbao and Changchun
The main advantage of trading using opposite Xinhu Zhongbao and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhu Zhongbao position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Xinhu Zhongbao vs. Union Semiconductor Co | Xinhu Zhongbao vs. Ingenic Semiconductor | Xinhu Zhongbao vs. Suzhou Oriental Semiconductor | Xinhu Zhongbao vs. Peoples Insurance of |
| Changchun vs. Zoy Home Furnishing | Changchun vs. Shenyang Blue Silver | Changchun vs. Hunan Mendale Hometextile | Changchun vs. Mengtian Home Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |