Correlation Between Changshu Automotive and Changshu Tongrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changshu Automotive Trim and Changshu Tongrun Auto, you can compare the effects of market volatilities on Changshu Automotive and Changshu Tongrun 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 Changshu Automotive with a short position of Changshu Tongrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Automotive and Changshu Tongrun.
Diversification Opportunities for Changshu Automotive and Changshu Tongrun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changshu and Changshu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Automotive Trim and Changshu Tongrun Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tongrun Auto and Changshu Automotive 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 Changshu Automotive Trim are associated (or correlated) with Changshu Tongrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tongrun Auto has no effect on the direction of Changshu Automotive i.e., Changshu Automotive and Changshu Tongrun go up and down completely randomly.
Pair Corralation between Changshu Automotive and Changshu Tongrun
Assuming the 90 days trading horizon Changshu Automotive Trim is expected to generate 0.6 times more return on investment than Changshu Tongrun. However, Changshu Automotive Trim is 1.66 times less risky than Changshu Tongrun. It trades about 0.05 of its potential returns per unit of risk. Changshu Tongrun Auto is currently generating about 0.01 per unit of risk. If you would invest 1,418 in Changshu Automotive Trim on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Changshu Automotive Trim or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Automotive Trim vs. Changshu Tongrun Auto
Performance |
| Timeline |
| Changshu Automotive Trim |
| Changshu Tongrun Auto |
Changshu Automotive and Changshu Tongrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Automotive and Changshu Tongrun
The main advantage of trading using opposite Changshu Automotive and Changshu Tongrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Automotive position performs unexpectedly, Changshu Tongrun 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 Changshu Tongrun will offset losses from the drop in Changshu Tongrun's long position.| Changshu Automotive vs. Agricultural Bank of | Changshu Automotive vs. Industrial and Commercial | Changshu Automotive vs. Bank of China | Changshu Automotive vs. China Construction Bank |
| Changshu Tongrun vs. Changshu Tianyin Electromechan | Changshu Tongrun vs. Changshu Ruite Electric | Changshu Tongrun vs. Changshu Automotive Trim | Changshu Tongrun vs. Zhejiang Zanyu 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |