Correlation Between Changjiang Jinggong and Beijing UniStrong
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Beijing UniStrong Science, you can compare the effects of market volatilities on Changjiang Jinggong and Beijing UniStrong 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 Beijing UniStrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Beijing UniStrong.
Diversification Opportunities for Changjiang Jinggong and Beijing UniStrong
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changjiang and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Beijing UniStrong Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing UniStrong Science 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 Beijing UniStrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing UniStrong Science has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Beijing UniStrong go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Beijing UniStrong
Assuming the 90 days trading horizon Changjiang Jinggong is expected to generate 2.93 times less return on investment than Beijing UniStrong. But when comparing it to its historical volatility, Changjiang Jinggong Steel is 2.69 times less risky than Beijing UniStrong. It trades about 0.22 of its potential returns per unit of risk. Beijing UniStrong Science is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Beijing UniStrong Science on September 18, 2024 and sell it today you would earn a total of 180.00 from holding Beijing UniStrong Science or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Beijing UniStrong Science
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Beijing UniStrong Science |
Changjiang Jinggong and Beijing UniStrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Beijing UniStrong
The main advantage of trading using opposite Changjiang Jinggong and Beijing UniStrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Beijing UniStrong 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 Beijing UniStrong will offset losses from the drop in Beijing UniStrong's long position.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
| Beijing UniStrong vs. Hang Xiao Steel | Beijing UniStrong vs. Bloomage Biotechnology Corp | Beijing UniStrong vs. Changjiang Jinggong Steel | Beijing UniStrong vs. Dynagreen Environmental Protection |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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