Correlation Between Changchun Faway and Bank of Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun Faway Automobile and Bank of Communications, you can compare the effects of market volatilities on Changchun Faway and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Bank of Communications.
Diversification Opportunities for Changchun Faway and Bank of Communications
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changchun and Bank is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Changchun Faway i.e., Changchun Faway and Bank of Communications go up and down completely randomly.
Pair Corralation between Changchun Faway and Bank of Communications
Assuming the 90 days trading horizon Changchun Faway is expected to generate 3.02 times less return on investment than Bank of Communications. In addition to that, Changchun Faway is 1.57 times more volatile than Bank of Communications. It trades about 0.02 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.07 per unit of volatility. If you would invest 574.00 in Bank of Communications on August 25, 2024 and sell it today you would earn a total of 134.00 from holding Bank of Communications or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Bank of Communications
Performance |
| Timeline |
| Changchun Faway Auto |
| Bank of Communications |
Changchun Faway and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Bank of Communications
The main advantage of trading using opposite Changchun Faway and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Changchun Faway vs. Songz Automobile Air | Changchun Faway vs. Advanced Technology Materials | Changchun Faway vs. Sinomach Automobile Co | Changchun Faway vs. Ningxia Building Materials |
| Bank of Communications vs. Changchun Faway Automobile | Bank of Communications vs. Iat Automobile Technology | Bank of Communications vs. CIMC Vehicles Co | Bank of Communications vs. MayAir 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |