Correlation Between China State and Changzhou Xingyu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Changzhou Xingyu Automotive, you can compare the effects of market volatilities on China State and Changzhou Xingyu 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 China State with a short position of Changzhou Xingyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Changzhou Xingyu.
Diversification Opportunities for China State and Changzhou Xingyu
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Changzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Changzhou Xingyu Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Xingyu Aut and China State 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 China State Construction are associated (or correlated) with Changzhou Xingyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Xingyu Aut has no effect on the direction of China State i.e., China State and Changzhou Xingyu go up and down completely randomly.
Pair Corralation between China State and Changzhou Xingyu
Assuming the 90 days trading horizon China State Construction is expected to generate 0.59 times more return on investment than Changzhou Xingyu. However, China State Construction is 1.71 times less risky than Changzhou Xingyu. It trades about 0.02 of its potential returns per unit of risk. Changzhou Xingyu Automotive is currently generating about -0.09 per unit of risk. If you would invest 609.00 in China State Construction on September 13, 2024 and sell it today you would earn a total of 2.00 from holding China State Construction or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China State Construction vs. Changzhou Xingyu Automotive
Performance |
| Timeline |
| China State Construction |
| Changzhou Xingyu Aut |
China State and Changzhou Xingyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Changzhou Xingyu
The main advantage of trading using opposite China State and Changzhou Xingyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Changzhou Xingyu 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 Changzhou Xingyu will offset losses from the drop in Changzhou Xingyu's long position.| China State vs. Hangzhou Coco Healthcare | China State vs. Zhejiang Qianjiang Motorcycle | China State vs. Anhui Jianghuai Automobile | China State vs. Ningbo Fangzheng Automobile |
| Changzhou Xingyu vs. StarPower Semiconductor | Changzhou Xingyu vs. Ye Chiu Metal | Changzhou Xingyu vs. Union Semiconductor Co | Changzhou Xingyu vs. Juneyao Airlines |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance |