Correlation Between Changchun Faway and Qi An
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By analyzing existing cross correlation between Changchun Faway Automobile and Qi An Xin, you can compare the effects of market volatilities on Changchun Faway and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Qi An.
Diversification Opportunities for Changchun Faway and Qi An
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and 688561 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Changchun Faway i.e., Changchun Faway and Qi An go up and down completely randomly.
Pair Corralation between Changchun Faway and Qi An
Assuming the 90 days trading horizon Changchun Faway is expected to generate 1.46 times less return on investment than Qi An. But when comparing it to its historical volatility, Changchun Faway Automobile is 2.13 times less risky than Qi An. It trades about 0.18 of its potential returns per unit of risk. Qi An Xin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,207 in Qi An Xin on August 29, 2024 and sell it today you would earn a total of 739.00 from holding Qi An Xin or generate 33.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Qi An Xin
Performance |
| Timeline |
| Changchun Faway Auto |
| Qi An Xin |
Changchun Faway and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Qi An
The main advantage of trading using opposite Changchun Faway and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Changchun Faway vs. Miracll Chemicals Co | Changchun Faway vs. Guangzhou KingTeller Technology | Changchun Faway vs. Nantong Jiangshan Agrochemical | Changchun Faway vs. Shanghai Jinfeng Wine |
| Qi An vs. Jinhe Biotechnology Co | Qi An vs. Shandong Sanyuan Biotechnology | Qi An vs. Guangzhou KingTeller Technology | Qi An vs. CGN Nuclear Technology |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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