Correlation Between Yunnan Bowin and Chongqing Road
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By analyzing existing cross correlation between Yunnan Bowin Technology and Chongqing Road Bridge, you can compare the effects of market volatilities on Yunnan Bowin and Chongqing Road 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 Yunnan Bowin with a short position of Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Bowin and Chongqing Road.
Diversification Opportunities for Yunnan Bowin and Chongqing Road
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Chongqing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Bowin Technology and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge and Yunnan Bowin 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 Yunnan Bowin Technology are associated (or correlated) with Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Yunnan Bowin i.e., Yunnan Bowin and Chongqing Road go up and down completely randomly.
Pair Corralation between Yunnan Bowin and Chongqing Road
Assuming the 90 days trading horizon Yunnan Bowin Technology is expected to under-perform the Chongqing Road. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Bowin Technology is 1.15 times less risky than Chongqing Road. The stock trades about -0.06 of its potential returns per unit of risk. The Chongqing Road Bridge is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 553.00 in Chongqing Road Bridge on December 1, 2024 and sell it today you would earn a total of 35.00 from holding Chongqing Road Bridge or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Yunnan Bowin Technology vs. Chongqing Road Bridge
Performance |
| Timeline |
| Yunnan Bowin Technology |
| Chongqing Road Bridge |
Yunnan Bowin and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Bowin and Chongqing Road
The main advantage of trading using opposite Yunnan Bowin and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Bowin position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Yunnan Bowin vs. Xian International Medical | Yunnan Bowin vs. Nanjing Vishee Medical | Yunnan Bowin vs. Kontour Medical Technology | Yunnan Bowin vs. Semiconductor Manufacturing Intl |
| Chongqing Road vs. Fujian Nebula Electronics | Chongqing Road vs. Caihong Display Devices | Chongqing Road vs. AVIC Fund Management | Chongqing Road vs. Huaxia Fund Management |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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