Correlation Between Hefei Metalforming and Changchun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and Changchun UP Optotech, you can compare the effects of market volatilities on Hefei Metalforming and Changchun 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 Hefei Metalforming with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Changchun.
Diversification Opportunities for Hefei Metalforming and Changchun
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and Changchun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Changchun go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Changchun
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.43 times less return on investment than Changchun. In addition to that, Hefei Metalforming is 1.06 times more volatile than Changchun UP Optotech. It trades about 0.03 of its total potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.05 per unit of volatility. If you would invest 3,287 in Changchun UP Optotech on September 14, 2024 and sell it today you would earn a total of 1,007 from holding Changchun UP Optotech or generate 30.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Changchun UP Optotech
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Changchun UP Optotech |
Hefei Metalforming and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Changchun
The main advantage of trading using opposite Hefei Metalforming and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Changchun 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 will offset losses from the drop in Changchun's long position.| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |