Correlation Between Changchun BCHT and Hunan Tyen
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Hunan Tyen Machinery, you can compare the effects of market volatilities on Changchun BCHT and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Hunan Tyen.
Diversification Opportunities for Changchun BCHT and Hunan Tyen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Changchun and Hunan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Hunan Tyen go up and down completely randomly.
Pair Corralation between Changchun BCHT and Hunan Tyen
Assuming the 90 days trading horizon Changchun BCHT is expected to generate 1.74 times less return on investment than Hunan Tyen. But when comparing it to its historical volatility, Changchun BCHT Biotechnology is 1.89 times less risky than Hunan Tyen. It trades about 0.31 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Hunan Tyen Machinery on November 27, 2024 and sell it today you would earn a total of 68.00 from holding Hunan Tyen Machinery or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Changchun BCHT Biote |
| Hunan Tyen Machinery |
Changchun BCHT and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Hunan Tyen
The main advantage of trading using opposite Changchun BCHT and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Changchun BCHT vs. Agricultural Bank of | Changchun BCHT vs. Industrial and Commercial | Changchun BCHT vs. Bank of China | Changchun BCHT vs. PetroChina Co Ltd |
| Hunan Tyen vs. A Zenith Home Furnishings | Hunan Tyen vs. Beijing Mainstreets Investment | Hunan Tyen vs. Spring Airlines Co | Hunan Tyen vs. Henan Shuanghui Investment |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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