Correlation Between Changchun Engley and Hangzhou Guotai
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By analyzing existing cross correlation between Changchun Engley Automobile and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on Changchun Engley and Hangzhou Guotai 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 Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Hangzhou Guotai.
Diversification Opportunities for Changchun Engley and Hangzhou Guotai
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and Hangzhou is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of Changchun Engley i.e., Changchun Engley and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between Changchun Engley and Hangzhou Guotai
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to generate 1.4 times more return on investment than Hangzhou Guotai. However, Changchun Engley is 1.4 times more volatile than Hangzhou Guotai Environmental. It trades about 0.06 of its potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.05 per unit of risk. If you would invest 367.00 in Changchun Engley Automobile on December 30, 2024 and sell it today you would earn a total of 7.00 from holding Changchun Engley Automobile or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| Changchun Engley Aut |
| Hangzhou Guotai Envi |
Changchun Engley and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Hangzhou Guotai
The main advantage of trading using opposite Changchun Engley and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Hangzhou Guotai 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 Hangzhou Guotai will offset losses from the drop in Hangzhou Guotai's long position.| Changchun Engley vs. Qilu Bank Co | Changchun Engley vs. Biwin Storage Technology | Changchun Engley vs. Ping An Insurance | Changchun Engley vs. Industrial Bank 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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