Correlation Between Changchun Faway and BCEG Environmental
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By analyzing existing cross correlation between Changchun Faway Automobile and BCEG Environmental Remediation, you can compare the effects of market volatilities on Changchun Faway and BCEG Environmental 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 BCEG Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and BCEG Environmental.
Diversification Opportunities for Changchun Faway and BCEG Environmental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and BCEG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and BCEG Environmental Remediation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCEG Environmental 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 BCEG Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCEG Environmental has no effect on the direction of Changchun Faway i.e., Changchun Faway and BCEG Environmental go up and down completely randomly.
Pair Corralation between Changchun Faway and BCEG Environmental
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.69 times more return on investment than BCEG Environmental. However, Changchun Faway Automobile is 1.44 times less risky than BCEG Environmental. It trades about 0.04 of its potential returns per unit of risk. BCEG Environmental Remediation is currently generating about -0.01 per unit of risk. If you would invest 768.00 in Changchun Faway Automobile on August 31, 2024 and sell it today you would earn a total of 175.00 from holding Changchun Faway Automobile or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Changchun Faway Automobile vs. BCEG Environmental Remediation
Performance |
| Timeline |
| Changchun Faway Auto |
| BCEG Environmental |
Changchun Faway and BCEG Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and BCEG Environmental
The main advantage of trading using opposite Changchun Faway and BCEG Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, BCEG Environmental 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 BCEG Environmental will offset losses from the drop in BCEG Environmental's long position.| Changchun Faway vs. Tieling Newcity Investment | Changchun Faway vs. Markor International Home | Changchun Faway vs. Cultural Investment Holdings | Changchun Faway vs. Suofeiya Home Collection |
| BCEG Environmental vs. Cultural Investment Holdings | BCEG Environmental vs. Gome Telecom Equipment | BCEG Environmental vs. Bus Online Co | BCEG Environmental vs. Holitech Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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