Correlation Between Changjiang Jinggong and Dongguan Chitwing
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Changjiang Jinggong and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Dongguan Chitwing.
Diversification Opportunities for Changjiang Jinggong and Dongguan Chitwing
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Dongguan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Dongguan Chitwing
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to under-perform the Dongguan Chitwing. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Jinggong Steel is 2.91 times less risky than Dongguan Chitwing. The stock trades about -0.03 of its potential returns per unit of risk. The Dongguan Chitwing Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 879.00 in Dongguan Chitwing Technology on August 30, 2024 and sell it today you would earn a total of 1,508 from holding Dongguan Chitwing Technology or generate 171.56% 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. Dongguan Chitwing Technology
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Dongguan Chitwing |
Changjiang Jinggong and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Dongguan Chitwing
The main advantage of trading using opposite Changjiang Jinggong and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Changjiang Jinggong vs. Lander Sports Development | Changjiang Jinggong vs. Shanghai CEO Environmental | Changjiang Jinggong vs. Cicc Fund Management | Changjiang Jinggong vs. Chengdu B ray Media |
| Dongguan Chitwing vs. Glodon Software Co | Dongguan Chitwing vs. Shenzhen Topway Video | Dongguan Chitwing vs. Shenzhen Bioeasy Biotechnology | Dongguan Chitwing vs. ZYF Lopsking Aluminum |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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