Correlation Between Changchun Engley and Xiangpiaopiao Food
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By analyzing existing cross correlation between Changchun Engley Automobile and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Changchun Engley and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Xiangpiaopiao Food.
Diversification Opportunities for Changchun Engley and Xiangpiaopiao Food
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changchun and Xiangpiaopiao is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Changchun Engley i.e., Changchun Engley and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Changchun Engley and Xiangpiaopiao Food
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to under-perform the Xiangpiaopiao Food. But the stock apears to be less risky and, when comparing its historical volatility, Changchun Engley Automobile is 1.96 times less risky than Xiangpiaopiao Food. The stock trades about -0.22 of its potential returns per unit of risk. The Xiangpiaopiao Food Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,538 in Xiangpiaopiao Food Co on October 19, 2024 and sell it today you would earn a total of 74.00 from holding Xiangpiaopiao Food Co or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Changchun Engley Aut |
| Xiangpiaopiao Food |
Changchun Engley and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Xiangpiaopiao Food
The main advantage of trading using opposite Changchun Engley and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food's long position.| Changchun Engley vs. Industrial and Commercial | Changchun Engley vs. Agricultural Bank of | Changchun Engley vs. China Construction Bank | Changchun Engley vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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