Correlation Between Changchun BCHT and Gansu Jiu
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Gansu Jiu Steel, you can compare the effects of market volatilities on Changchun BCHT and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Gansu Jiu.
Diversification Opportunities for Changchun BCHT and Gansu Jiu
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changchun and Gansu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Gansu Jiu go up and down completely randomly.
Pair Corralation between Changchun BCHT and Gansu Jiu
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Gansu Jiu. In addition to that, Changchun BCHT is 1.38 times more volatile than Gansu Jiu Steel. It trades about -0.07 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.01 per unit of volatility. If you would invest 173.00 in Gansu Jiu Steel on October 13, 2024 and sell it today you would lose (28.00) from holding Gansu Jiu Steel or give up 16.18% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Changchun BCHT Biote |
| Gansu Jiu Steel |
Changchun BCHT and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Gansu Jiu
The main advantage of trading using opposite Changchun BCHT and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Changchun BCHT vs. Shanghai Phichem Material | Changchun BCHT vs. Malion New Materials | Changchun BCHT vs. Anhui Transport Consulting | Changchun BCHT vs. Hainan Haiqi Transportation |
| Gansu Jiu vs. Changchun BCHT Biotechnology | Gansu Jiu vs. Qingdao Foods Co | Gansu Jiu vs. Gan Yuan Foods | Gansu Jiu vs. Beijing Sanyuan Foods |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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