Correlation Between Changchun BCHT and Marssenger Kitchenware
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun BCHT Biotechnology and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Changchun BCHT and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Marssenger Kitchenware.
Diversification Opportunities for Changchun BCHT and Marssenger Kitchenware
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Marssenger is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Changchun BCHT and Marssenger Kitchenware
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Marssenger Kitchenware. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 2.95 times less risky than Marssenger Kitchenware. The stock trades about -0.44 of its potential returns per unit of risk. The Marssenger Kitchenware Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,421 in Marssenger Kitchenware Co on October 30, 2024 and sell it today you would lose (92.00) from holding Marssenger Kitchenware Co or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| Marssenger Kitchenware |
Changchun BCHT and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Marssenger Kitchenware
The main advantage of trading using opposite Changchun BCHT and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Changchun BCHT vs. GreenTech Environmental Co | Changchun BCHT vs. Shanghai CEO Environmental | Changchun BCHT vs. Cansino Biologics | Changchun BCHT vs. Shenzhen MYS Environmental |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |