Correlation Between Changchun BCHT and China State
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and China State Construction, you can compare the effects of market volatilities on Changchun BCHT and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and China State.
Diversification Opportunities for Changchun BCHT and China State
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and China State go up and down completely randomly.
Pair Corralation between Changchun BCHT and China State
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the China State. In addition to that, Changchun BCHT is 1.65 times more volatile than China State Construction. It trades about -0.4 of its total potential returns per unit of risk. China State Construction is currently generating about -0.38 per unit of volatility. If you would invest 608.00 in China State Construction on October 29, 2024 and sell it today you would lose (49.00) from holding China State Construction or give up 8.06% 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. China State Construction
Performance |
| Timeline |
| Changchun BCHT Biote |
| China State Construction |
Changchun BCHT and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and China State
The main advantage of trading using opposite Changchun BCHT and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Changchun BCHT vs. Sunny Loan Top | Changchun BCHT vs. TongFu Microelectronics Co | Changchun BCHT vs. Weihai Honglin Electronic | Changchun BCHT vs. Xiangyang Automobile Bearing |
| China State vs. Panda Dairy Corp | China State vs. Uroica Mining Safety | China State vs. Qingdao Foods Co | China State vs. Kingclean Electric 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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