Correlation Between Chongqing Sokon and By Health
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By analyzing existing cross correlation between Chongqing Sokon Ind and By health, you can compare the effects of market volatilities on Chongqing Sokon and By Health 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 Chongqing Sokon with a short position of By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and By Health.
Diversification Opportunities for Chongqing Sokon and By Health
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and 300146 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health and Chongqing Sokon 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 Chongqing Sokon Ind are associated (or correlated) with By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Chongqing Sokon i.e., Chongqing Sokon and By Health go up and down completely randomly.
Pair Corralation between Chongqing Sokon and By Health
Assuming the 90 days trading horizon Chongqing Sokon Ind is expected to under-perform the By Health. In addition to that, Chongqing Sokon is 2.44 times more volatile than By health. It trades about -0.03 of its total potential returns per unit of risk. By health is currently generating about -0.06 per unit of volatility. If you would invest 1,362 in By health on September 12, 2024 and sell it today you would lose (34.00) from holding By health or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. By health
Performance |
| Timeline |
| Chongqing Sokon Ind |
| By health |
Chongqing Sokon and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and By Health
The main advantage of trading using opposite Chongqing Sokon and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| Chongqing Sokon vs. Saurer Intelligent Technology | Chongqing Sokon vs. GRINM Semiconductor Materials | Chongqing Sokon vs. Niutech Environment Technology | Chongqing Sokon vs. Yuan Longping High tech |
| By Health vs. China Petroleum Chemical | By Health vs. PetroChina Co Ltd | By Health vs. China State Construction | By Health vs. China Railway Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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