Correlation Between Changjiang Jinggong and Central Plains
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Central Plains Environment, you can compare the effects of market volatilities on Changjiang Jinggong and Central Plains 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 Changjiang Jinggong with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Central Plains.
Diversification Opportunities for Changjiang Jinggong and Central Plains
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Central is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Changjiang Jinggong 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 Changjiang Jinggong Steel are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Central Plains go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Central Plains
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.8 times more return on investment than Central Plains. However, Changjiang Jinggong Steel is 1.25 times less risky than Central Plains. It trades about 0.06 of its potential returns per unit of risk. Central Plains Environment is currently generating about 0.0 per unit of risk. If you would invest 295.00 in Changjiang Jinggong Steel on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Changjiang Jinggong Steel or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Central Plains Environment
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Central Plains Envir |
Changjiang Jinggong and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Central Plains
The main advantage of trading using opposite Changjiang Jinggong and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
| Central Plains vs. China Petroleum Chemical | Central Plains vs. PetroChina Co Ltd | Central Plains vs. China State Construction | Central Plains vs. China Railway 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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