Correlation Between Changchun BCHT and Thunder Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun BCHT Biotechnology and Thunder Software Technology, you can compare the effects of market volatilities on Changchun BCHT and Thunder Software 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 Changchun BCHT with a short position of Thunder Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Thunder Software.
Diversification Opportunities for Changchun BCHT and Thunder Software
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Thunder is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Thunder Software Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Software Tec and Changchun BCHT 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 Changchun BCHT Biotechnology are associated (or correlated) with Thunder Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Software Tec has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Thunder Software go up and down completely randomly.
Pair Corralation between Changchun BCHT and Thunder Software
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Thunder Software. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 2.97 times less risky than Thunder Software. The stock trades about -0.38 of its potential returns per unit of risk. The Thunder Software Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,531 in Thunder Software Technology on October 28, 2024 and sell it today you would lose (39.00) from holding Thunder Software Technology or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Thunder Software Technology
Performance |
| Timeline |
| Changchun BCHT Biote |
| Thunder Software Tec |
Changchun BCHT and Thunder Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Thunder Software
The main advantage of trading using opposite Changchun BCHT and Thunder Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Thunder Software 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 Thunder Software will offset losses from the drop in Thunder Software's long position.| Changchun BCHT vs. Everdisplay Optronics Shanghai | Changchun BCHT vs. Caihong Display Devices | Changchun BCHT vs. Eit Environmental Development | Changchun BCHT vs. Sinocat Environmental Technology |
| Thunder Software vs. Bank of China | Thunder Software vs. Kweichow Moutai Co | Thunder Software vs. PetroChina Co Ltd | Thunder Software vs. Bank of Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |