Correlation Between Changchun Engley and Porton Fine
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By analyzing existing cross correlation between Changchun Engley Automobile and Porton Fine Chemicals, you can compare the effects of market volatilities on Changchun Engley and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Porton Fine.
Diversification Opportunities for Changchun Engley and Porton Fine
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Porton is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Changchun Engley i.e., Changchun Engley and Porton Fine go up and down completely randomly.
Pair Corralation between Changchun Engley and Porton Fine
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to under-perform the Porton Fine. In addition to that, Changchun Engley is 1.62 times more volatile than Porton Fine Chemicals. It trades about -0.27 of its total potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.33 per unit of volatility. If you would invest 1,750 in Porton Fine Chemicals on October 17, 2024 and sell it today you would lose (230.00) from holding Porton Fine Chemicals or give up 13.14% 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. Porton Fine Chemicals
Performance |
| Timeline |
| Changchun Engley Aut |
| Porton Fine Chemicals |
Changchun Engley and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Porton Fine
The main advantage of trading using opposite Changchun Engley and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Changchun Engley vs. Hainan Mining Co | Changchun Engley vs. Andon Health Co | Changchun Engley vs. Guocheng Mining Co | Changchun Engley vs. Tianjin Silvery Dragon |
| Porton Fine vs. Haima Automobile Group | Porton Fine vs. Changchun Engley Automobile | Porton Fine vs. Huaxia Fund Management | Porton Fine vs. Anhui Jianghuai Automobile |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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