Correlation Between Changchun Faway and Sharetronic Data
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By analyzing existing cross correlation between Changchun Faway Automobile and Sharetronic Data Technology, you can compare the effects of market volatilities on Changchun Faway and Sharetronic Data 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 Changchun Faway with a short position of Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Sharetronic Data.
Diversification Opportunities for Changchun Faway and Sharetronic Data
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changchun and Sharetronic is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec and Changchun Faway 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 Changchun Faway Automobile are associated (or correlated) with Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of Changchun Faway i.e., Changchun Faway and Sharetronic Data go up and down completely randomly.
Pair Corralation between Changchun Faway and Sharetronic Data
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to under-perform the Sharetronic Data. But the stock apears to be less risky and, when comparing its historical volatility, Changchun Faway Automobile is 2.3 times less risky than Sharetronic Data. The stock trades about -0.16 of its potential returns per unit of risk. The Sharetronic Data Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 10,406 in Sharetronic Data Technology on October 20, 2024 and sell it today you would lose (48.00) from holding Sharetronic Data Technology or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Sharetronic Data Technology
Performance |
| Timeline |
| Changchun Faway Auto |
| Sharetronic Data Tec |
Changchun Faway and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Sharetronic Data
The main advantage of trading using opposite Changchun Faway and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's long position.| Changchun Faway vs. Industrial and Commercial | Changchun Faway vs. Agricultural Bank of | Changchun Faway vs. China Construction Bank | Changchun Faway vs. Bank of China |
| Sharetronic Data vs. Chinese Universe Publishing | Sharetronic Data vs. Qtone Education Group | Sharetronic Data vs. Anhui Jinhe Industrial | Sharetronic Data vs. Jonjee Hi tech Industrial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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