Correlation Between Changshu Tongrun and Gansu Yasheng
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By analyzing existing cross correlation between Changshu Tongrun Auto and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Changshu Tongrun and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and Gansu Yasheng.
Diversification Opportunities for Changshu Tongrun and Gansu Yasheng
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changshu and Gansu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Changshu Tongrun i.e., Changshu Tongrun and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Changshu Tongrun and Gansu Yasheng
Assuming the 90 days trading horizon Changshu Tongrun Auto is expected to generate 1.91 times more return on investment than Gansu Yasheng. However, Changshu Tongrun is 1.91 times more volatile than Gansu Yasheng Industrial. It trades about 0.2 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.02 per unit of risk. If you would invest 1,752 in Changshu Tongrun Auto on November 28, 2024 and sell it today you would earn a total of 140.00 from holding Changshu Tongrun Auto or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Changshu Tongrun Auto |
| Gansu Yasheng Industrial |
Changshu Tongrun and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and Gansu Yasheng
The main advantage of trading using opposite Changshu Tongrun and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Changshu Tongrun vs. Beijing Kingsoft Office | Changshu Tongrun vs. Baoding Dongli Machinery | Changshu Tongrun vs. Huasi Agricultural Development | Changshu Tongrun vs. Ningbo Homelink Eco iTech |
| Gansu Yasheng vs. Kidswant Children Products | Gansu Yasheng vs. Suzhou Douson Drilling | Gansu Yasheng vs. Shaanxi Meineng Clean | Gansu Yasheng vs. Shandong Longquan Pipeline |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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