Correlation Between Changchun Engley and Changchun Faway
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By analyzing existing cross correlation between Changchun Engley Automobile and Changchun Faway Automobile, you can compare the effects of market volatilities on Changchun Engley and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Changchun Faway.
Diversification Opportunities for Changchun Engley and Changchun Faway
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Changchun is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Changchun Engley i.e., Changchun Engley and Changchun Faway go up and down completely randomly.
Pair Corralation between Changchun Engley and Changchun Faway
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to generate 0.97 times more return on investment than Changchun Faway. However, Changchun Engley Automobile is 1.03 times less risky than Changchun Faway. It trades about 0.04 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.03 per unit of risk. If you would invest 432.00 in Changchun Engley Automobile on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Changchun Engley Automobile or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Changchun Faway Automobile
Performance |
| Timeline |
| Changchun Engley Aut |
| Changchun Faway Auto |
Changchun Engley and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Changchun Faway
The main advantage of trading using opposite Changchun Engley and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Changchun Engley vs. China Asset Management | Changchun Engley vs. Jointo Energy Investment | Changchun Engley vs. China Satellite Communications | Changchun Engley vs. Metro Investment Development |
| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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