Correlation Between ButOne Information and Changchun Faway
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By analyzing existing cross correlation between ButOne Information Corp and Changchun Faway Automobile, you can compare the effects of market volatilities on ButOne Information and Changchun Faway 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 ButOne Information with a short position of Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Changchun Faway.
Diversification Opportunities for ButOne Information and Changchun Faway
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ButOne and Changchun is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto and ButOne Information 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 ButOne Information Corp are associated (or correlated) with Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of ButOne Information i.e., ButOne Information and Changchun Faway go up and down completely randomly.
Pair Corralation between ButOne Information and Changchun Faway
Assuming the 90 days trading horizon ButOne Information Corp is expected to generate 1.56 times more return on investment than Changchun Faway. However, ButOne Information is 1.56 times more volatile than Changchun Faway Automobile. It trades about 0.01 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.0 per unit of risk. If you would invest 2,494 in ButOne Information Corp on September 3, 2024 and sell it today you would lose (99.00) from holding ButOne Information Corp or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Changchun Faway Automobile
Performance |
| Timeline |
| ButOne Information Corp |
| Changchun Faway Auto |
ButOne Information and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Changchun Faway
The main advantage of trading using opposite ButOne Information and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Changchun Faway 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 Faway will offset losses from the drop in Changchun Faway's long position.| ButOne Information vs. Guangzhou KingTeller Technology | ButOne Information vs. Changchun UP Optotech | ButOne Information vs. Lander Sports Development | ButOne Information vs. Anhui Transport Consulting |
| Changchun Faway vs. PetroChina Co Ltd | Changchun Faway vs. China Mobile Limited | Changchun Faway vs. Industrial and Commercial | Changchun Faway vs. China Life Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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