Correlation Between Liaoning Dingjide and Changchun Engley
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Changchun Engley Automobile, you can compare the effects of market volatilities on Liaoning Dingjide and Changchun Engley 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 Liaoning Dingjide with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Changchun Engley.
Diversification Opportunities for Liaoning Dingjide and Changchun Engley
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Liaoning and Changchun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut and Liaoning Dingjide 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 Liaoning Dingjide Petrochemical are associated (or correlated) with Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Liaoning Dingjide i.e., Liaoning Dingjide and Changchun Engley go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Changchun Engley
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to generate 0.88 times more return on investment than Changchun Engley. However, Liaoning Dingjide Petrochemical is 1.14 times less risky than Changchun Engley. It trades about -0.01 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.02 per unit of risk. If you would invest 3,640 in Liaoning Dingjide Petrochemical on October 16, 2024 and sell it today you would lose (611.00) from holding Liaoning Dingjide Petrochemical or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Changchun Engley Automobile
Performance |
| Timeline |
| Liaoning Dingjide |
| Changchun Engley Aut |
Liaoning Dingjide and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and Changchun Engley
The main advantage of trading using opposite Liaoning Dingjide and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide position performs unexpectedly, Changchun Engley 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 Engley will offset losses from the drop in Changchun Engley's long position.| Liaoning Dingjide vs. Hunan Investment Group | Liaoning Dingjide vs. Zoje Resources Investment | Liaoning Dingjide vs. Jinhui Mining Co | Liaoning Dingjide vs. Zhejiang Kingland Pipeline |
| Changchun Engley vs. Liaoning Dingjide Petrochemical | Changchun Engley vs. AVIC Fund Management | Changchun Engley vs. Dymatic Chemicals | Changchun Engley vs. Chengdu Spaceon Electronics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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