Correlation Between Changchun BCHT and Lootom Telcovideo
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Lootom Telcovideo Network, you can compare the effects of market volatilities on Changchun BCHT and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Lootom Telcovideo.
Diversification Opportunities for Changchun BCHT and Lootom Telcovideo
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changchun and Lootom is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Changchun BCHT and Lootom Telcovideo
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Lootom Telcovideo. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.42 times less risky than Lootom Telcovideo. The stock trades about -0.1 of its potential returns per unit of risk. The Lootom Telcovideo Network is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 869.00 in Lootom Telcovideo Network on December 1, 2024 and sell it today you would lose (2.00) from holding Lootom Telcovideo Network or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Changchun BCHT Biote |
| Lootom Telcovideo Network |
Changchun BCHT and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Lootom Telcovideo
The main advantage of trading using opposite Changchun BCHT and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Changchun BCHT vs. Northern United Publishing | Changchun BCHT vs. Jiangsu Phoenix Publishing | Changchun BCHT vs. Tsingtao Brewery Co | Changchun BCHT vs. BTG Hotels Group |
| Lootom Telcovideo vs. Northern United Publishing | Lootom Telcovideo vs. Jiangsu Financial Leasing | Lootom Telcovideo vs. Changjiang Publishing Media | Lootom Telcovideo vs. COL Digital Publishing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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