Correlation Between Chongqing Sokon and Shandong Iron
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By analyzing existing cross correlation between Chongqing Sokon Ind and Shandong Iron and, you can compare the effects of market volatilities on Chongqing Sokon and Shandong Iron 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 Shandong Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and Shandong Iron.
Diversification Opportunities for Chongqing Sokon and Shandong Iron
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Shandong Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of Chongqing Sokon i.e., Chongqing Sokon and Shandong Iron go up and down completely randomly.
Pair Corralation between Chongqing Sokon and Shandong Iron
Assuming the 90 days trading horizon Chongqing Sokon Ind is expected to generate 1.36 times more return on investment than Shandong Iron. However, Chongqing Sokon is 1.36 times more volatile than Shandong Iron and. It trades about 0.16 of its potential returns per unit of risk. Shandong Iron and is currently generating about 0.1 per unit of risk. If you would invest 12,498 in Chongqing Sokon Ind on November 4, 2024 and sell it today you would earn a total of 781.00 from holding Chongqing Sokon Ind or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. Shandong Iron and
Performance |
| Timeline |
| Chongqing Sokon Ind |
| Shandong Iron |
Chongqing Sokon and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and Shandong Iron
The main advantage of trading using opposite Chongqing Sokon and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon position performs unexpectedly, Shandong Iron 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 Shandong Iron will offset losses from the drop in Shandong Iron's long position.| Chongqing Sokon vs. Agricultural Bank of | Chongqing Sokon vs. Industrial and Commercial | Chongqing Sokon vs. Bank of China | Chongqing Sokon vs. PetroChina Co Ltd |
| Shandong Iron vs. Mingchen Health Co | Shandong Iron vs. Meinian Onehealth Healthcare | Shandong Iron vs. Ningbo Fangzheng Automobile | Shandong Iron vs. Wintao Communications Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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