Correlation Between Lao Feng and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lao Feng Xiang and Chongqing Changan Automobile, you can compare the effects of market volatilities on Lao Feng and Chongqing Changan 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 Lao Feng with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lao Feng and Chongqing Changan.
Diversification Opportunities for Lao Feng and Chongqing Changan
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lao and Chongqing is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lao Feng Xiang and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Lao Feng 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 Lao Feng Xiang are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Lao Feng i.e., Lao Feng and Chongqing Changan go up and down completely randomly.
Pair Corralation between Lao Feng and Chongqing Changan
Assuming the 90 days trading horizon Lao Feng Xiang is expected to generate 2.0 times more return on investment than Chongqing Changan. However, Lao Feng is 2.0 times more volatile than Chongqing Changan Automobile. It trades about -0.02 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.28 per unit of risk. If you would invest 5,140 in Lao Feng Xiang on October 23, 2024 and sell it today you would lose (110.00) from holding Lao Feng Xiang or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lao Feng Xiang vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Lao Feng Xiang |
| Chongqing Changan |
Lao Feng and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lao Feng and Chongqing Changan
The main advantage of trading using opposite Lao Feng and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lao Feng position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Lao Feng vs. Chongqing Changan Automobile | Lao Feng vs. Thunder Software Technology | Lao Feng vs. Glodon Software Co | Lao Feng vs. Shanghai Newtouch Software |
| Chongqing Changan vs. Tianshan Aluminum Group | Chongqing Changan vs. Zhejiang Yongjin Metal | Chongqing Changan vs. Jiaozuo Wanfang Aluminum | Chongqing Changan vs. CITIC Metal Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |