Correlation Between Oppein Home and Changshu Automotive
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By analyzing existing cross correlation between Oppein Home Group and Changshu Automotive Trim, you can compare the effects of market volatilities on Oppein Home and Changshu Automotive 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 Oppein Home with a short position of Changshu Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Changshu Automotive.
Diversification Opportunities for Oppein Home and Changshu Automotive
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppein and Changshu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Changshu Automotive Trim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Automotive Trim and Oppein Home 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 Oppein Home Group are associated (or correlated) with Changshu Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Automotive Trim has no effect on the direction of Oppein Home i.e., Oppein Home and Changshu Automotive go up and down completely randomly.
Pair Corralation between Oppein Home and Changshu Automotive
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 1.3 times more return on investment than Changshu Automotive. However, Oppein Home is 1.3 times more volatile than Changshu Automotive Trim. It trades about 0.01 of its potential returns per unit of risk. Changshu Automotive Trim is currently generating about -0.04 per unit of risk. If you would invest 8,070 in Oppein Home Group on September 14, 2024 and sell it today you would lose (570.00) from holding Oppein Home Group or give up 7.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Changshu Automotive Trim
Performance |
| Timeline |
| Oppein Home Group |
| Changshu Automotive Trim |
Oppein Home and Changshu Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Changshu Automotive
The main advantage of trading using opposite Oppein Home and Changshu Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Changshu Automotive 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 Automotive will offset losses from the drop in Changshu Automotive's long position.| Oppein Home vs. Lutian Machinery Co | Oppein Home vs. China Longyuan Power | Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. Bank of China |
| Changshu Automotive vs. Easyhome New Retail | Changshu Automotive vs. Chison Medical Technologies | Changshu Automotive vs. China World Trade | Changshu Automotive vs. Oppein Home Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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