Correlation Between Changshu Tongrun and Sino Wealth
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By analyzing existing cross correlation between Changshu Tongrun Auto and Sino Wealth Electronic, you can compare the effects of market volatilities on Changshu Tongrun and Sino Wealth 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 Tongrun with a short position of Sino Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and Sino Wealth.
Diversification Opportunities for Changshu Tongrun and Sino Wealth
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changshu and Sino is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto and Sino Wealth Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Wealth Electronic and Changshu Tongrun 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 Tongrun Auto are associated (or correlated) with Sino Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Wealth Electronic has no effect on the direction of Changshu Tongrun i.e., Changshu Tongrun and Sino Wealth go up and down completely randomly.
Pair Corralation between Changshu Tongrun and Sino Wealth
Assuming the 90 days trading horizon Changshu Tongrun Auto is expected to generate 1.01 times more return on investment than Sino Wealth. However, Changshu Tongrun is 1.01 times more volatile than Sino Wealth Electronic. It trades about 0.08 of its potential returns per unit of risk. Sino Wealth Electronic is currently generating about 0.0 per unit of risk. If you would invest 1,785 in Changshu Tongrun Auto on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Changshu Tongrun Auto or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. Sino Wealth Electronic
Performance |
| Timeline |
| Changshu Tongrun Auto |
| Sino Wealth Electronic |
Changshu Tongrun and Sino Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and Sino Wealth
The main advantage of trading using opposite Changshu Tongrun and Sino Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun position performs unexpectedly, Sino Wealth 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 Sino Wealth will offset losses from the drop in Sino Wealth's long position.| Changshu Tongrun vs. CITIC Guoan Information | Changshu Tongrun vs. Invengo Information Technology | Changshu Tongrun vs. China Asset Management | Changshu Tongrun vs. Digital China Information |
| Sino Wealth vs. Fiberhome Telecommunication Technologies | Sino Wealth vs. Jilin Jlu Communication | Sino Wealth vs. PKU HealthCare Corp | Sino Wealth vs. Impulse Qingdao Health |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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