Correlation Between Changchun Engley and Jiangsu Yanghe
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By analyzing existing cross correlation between Changchun Engley Automobile and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Changchun Engley and Jiangsu Yanghe 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 Engley with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Jiangsu Yanghe.
Diversification Opportunities for Changchun Engley and Jiangsu Yanghe
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Changchun Engley 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 Engley Automobile are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Changchun Engley i.e., Changchun Engley and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Changchun Engley and Jiangsu Yanghe
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to generate 1.56 times more return on investment than Jiangsu Yanghe. However, Changchun Engley is 1.56 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.02 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.07 per unit of risk. If you would invest 546.00 in Changchun Engley Automobile on October 28, 2024 and sell it today you would lose (192.00) from holding Changchun Engley Automobile or give up 35.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Changchun Engley Aut |
| Jiangsu Yanghe Brewery |
Changchun Engley and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Jiangsu Yanghe
The main advantage of trading using opposite Changchun Engley and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Changchun Engley vs. Queclink Wireless Solutions | Changchun Engley vs. Haima Automobile Group | Changchun Engley vs. China Mobile Limited | Changchun Engley vs. Shannon Semiconductor Technology |
| Jiangsu Yanghe vs. Chengdu Kanghua Biological | Jiangsu Yanghe vs. Beijing Wantai Biological | Jiangsu Yanghe vs. Suzhou Novoprotein Scientific | Jiangsu Yanghe vs. Aluminum Corp of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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