Correlation Between Smartgiant Technology and Changchun
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By analyzing existing cross correlation between Smartgiant Technology Co and Changchun UP Optotech, you can compare the effects of market volatilities on Smartgiant Technology and Changchun 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 Smartgiant Technology with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartgiant Technology and Changchun.
Diversification Opportunities for Smartgiant Technology and Changchun
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Smartgiant and Changchun is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Smartgiant Technology Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Smartgiant Technology 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 Smartgiant Technology Co are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Smartgiant Technology i.e., Smartgiant Technology and Changchun go up and down completely randomly.
Pair Corralation between Smartgiant Technology and Changchun
Assuming the 90 days trading horizon Smartgiant Technology Co is expected to generate 0.99 times more return on investment than Changchun. However, Smartgiant Technology Co is 1.01 times less risky than Changchun. It trades about -0.11 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.26 per unit of risk. If you would invest 4,735 in Smartgiant Technology Co on October 12, 2024 and sell it today you would lose (716.00) from holding Smartgiant Technology Co or give up 15.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smartgiant Technology Co vs. Changchun UP Optotech
Performance |
| Timeline |
| Smartgiant Technology |
| Changchun UP Optotech |
Smartgiant Technology and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smartgiant Technology and Changchun
The main advantage of trading using opposite Smartgiant Technology and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartgiant Technology position performs unexpectedly, Changchun 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 will offset losses from the drop in Changchun's long position.| Smartgiant Technology vs. Servyou Software Group | Smartgiant Technology vs. Sharetronic Data Technology | Smartgiant Technology vs. Inspur Software Co | Smartgiant Technology vs. ButOne Information Corp |
| Changchun vs. Guangzhou KingTeller Technology | Changchun vs. Smartgiant Technology Co | Changchun vs. Kingsignal Technology Co | Changchun vs. Tianjin Ruixin Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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