Correlation Between Piotech and Chongqing Sulian
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By analyzing existing cross correlation between Piotech Inc A and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Piotech and Chongqing Sulian 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 Piotech with a short position of Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Chongqing Sulian.
Diversification Opportunities for Piotech and Chongqing Sulian
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Chongqing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic and Piotech 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 Piotech Inc A are associated (or correlated) with Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Piotech i.e., Piotech and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Piotech and Chongqing Sulian
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Chongqing Sulian. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.28 times less risky than Chongqing Sulian. The stock trades about -0.33 of its potential returns per unit of risk. The Chongqing Sulian Plastic is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,687 in Chongqing Sulian Plastic on September 27, 2024 and sell it today you would lose (72.00) from holding Chongqing Sulian Plastic or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Piotech Inc A |
| Chongqing Sulian Plastic |
Piotech and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Chongqing Sulian
The main advantage of trading using opposite Piotech and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech vs. Loctek Ergonomic Technology |
| Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian vs. Dongxing Sec Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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