Correlation Between Changchun BCHT and Poly Real
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Poly Real Estate, you can compare the effects of market volatilities on Changchun BCHT and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Poly Real.
Diversification Opportunities for Changchun BCHT and Poly Real
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Poly is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Poly Real go up and down completely randomly.
Pair Corralation between Changchun BCHT and Poly Real
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to generate 1.33 times more return on investment than Poly Real. However, Changchun BCHT is 1.33 times more volatile than Poly Real Estate. It trades about -0.08 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.18 per unit of risk. If you would invest 2,900 in Changchun BCHT Biotechnology on September 13, 2024 and sell it today you would lose (121.00) from holding Changchun BCHT Biotechnology or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Poly Real Estate
Performance |
| Timeline |
| Changchun BCHT Biote |
| Poly Real Estate |
Changchun BCHT and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Poly Real
The main advantage of trading using opposite Changchun BCHT and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Changchun BCHT vs. BeiGene | Changchun BCHT vs. Kweichow Moutai Co | Changchun BCHT vs. Beijing Roborock Technology | Changchun BCHT vs. G bits Network Technology |
| Poly Real vs. Hefei Metalforming Mach | Poly Real vs. Chengtun Mining Group | Poly Real vs. Ningbo Thermal Power | Poly Real vs. MayAir Technology Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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