Correlation Between Guizhou BroadcastingTV and Chongqing Changan
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By analyzing existing cross correlation between Guizhou BroadcastingTV Info and Chongqing Changan Automobile, you can compare the effects of market volatilities on Guizhou BroadcastingTV and Chongqing Changan 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 Guizhou BroadcastingTV with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou BroadcastingTV and Chongqing Changan.
Diversification Opportunities for Guizhou BroadcastingTV and Chongqing Changan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guizhou and Chongqing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou BroadcastingTV Info and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV Info are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Guizhou BroadcastingTV i.e., Guizhou BroadcastingTV and Chongqing Changan go up and down completely randomly.
Pair Corralation between Guizhou BroadcastingTV and Chongqing Changan
Assuming the 90 days trading horizon Guizhou BroadcastingTV is expected to generate 2.51 times less return on investment than Chongqing Changan. In addition to that, Guizhou BroadcastingTV is 1.77 times more volatile than Chongqing Changan Automobile. It trades about 0.01 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.02 per unit of volatility. If you would invest 318.00 in Chongqing Changan Automobile on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Chongqing Changan Automobile or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou BroadcastingTV Info vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Guizhou BroadcastingTV |
| Chongqing Changan |
Guizhou BroadcastingTV and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou BroadcastingTV and Chongqing Changan
The main advantage of trading using opposite Guizhou BroadcastingTV and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou BroadcastingTV position performs unexpectedly, Chongqing Changan 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 Changan will offset losses from the drop in Chongqing Changan's long position.| Guizhou BroadcastingTV vs. China Petroleum Chemical | Guizhou BroadcastingTV vs. PetroChina Co Ltd | Guizhou BroadcastingTV vs. China State Construction | Guizhou BroadcastingTV vs. China Railway Group |
| Chongqing Changan vs. JuneYao Dairy Co | Chongqing Changan vs. Guangzhou KingTeller Technology | Chongqing Changan vs. Linewell Software Co | Chongqing Changan vs. Keeson Technology Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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