Correlation Between Changchun Faway and Chison Medical
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By analyzing existing cross correlation between Changchun Faway Automobile and Chison Medical Technologies, you can compare the effects of market volatilities on Changchun Faway and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Chison Medical.
Diversification Opportunities for Changchun Faway and Chison Medical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Chison is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Changchun Faway i.e., Changchun Faway and Chison Medical go up and down completely randomly.
Pair Corralation between Changchun Faway and Chison Medical
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.64 times more return on investment than Chison Medical. However, Changchun Faway Automobile is 1.55 times less risky than Chison Medical. It trades about 0.01 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.02 per unit of risk. If you would invest 969.00 in Changchun Faway Automobile on September 14, 2024 and sell it today you would lose (2.00) from holding Changchun Faway Automobile or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Chison Medical Technologies
Performance |
| Timeline |
| Changchun Faway Auto |
| Chison Medical Techn |
Changchun Faway and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Chison Medical
The main advantage of trading using opposite Changchun Faway and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
| Chison Medical vs. Industrial and Commercial | Chison Medical vs. Kweichow Moutai Co | Chison Medical vs. Agricultural Bank of | Chison Medical vs. China Mobile Limited |
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.
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