Correlation Between Changchun BCHT and China World
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and China World Trade, you can compare the effects of market volatilities on Changchun BCHT and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and China World.
Diversification Opportunities for Changchun BCHT and China World
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changchun and China is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and China World go up and down completely randomly.
Pair Corralation between Changchun BCHT and China World
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to generate 1.86 times more return on investment than China World. However, Changchun BCHT is 1.86 times more volatile than China World Trade. It trades about 0.04 of its potential returns per unit of risk. China World Trade is currently generating about -0.05 per unit of risk. If you would invest 2,595 in Changchun BCHT Biotechnology on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Changchun BCHT Biotechnology or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. China World Trade
Performance |
| Timeline |
| Changchun BCHT Biote |
| China World Trade |
Changchun BCHT and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and China World
The main advantage of trading using opposite Changchun BCHT and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Changchun BCHT vs. Chengdu Kanghua Biological | Changchun BCHT vs. Beijing Wantai Biological | Changchun BCHT vs. Suzhou Novoprotein Scientific | Changchun BCHT vs. Aluminum Corp of |
| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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