Correlation Between Changchun BCHT and Touchstone International
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Touchstone International Medical, you can compare the effects of market volatilities on Changchun BCHT and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Touchstone International.
Diversification Opportunities for Changchun BCHT and Touchstone International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Touchstone is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Touchstone International go up and down completely randomly.
Pair Corralation between Changchun BCHT and Touchstone International
Assuming the 90 days trading horizon Changchun BCHT is expected to generate 2.21 times less return on investment than Touchstone International. In addition to that, Changchun BCHT is 1.03 times more volatile than Touchstone International Medical. It trades about 0.06 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about 0.14 per unit of volatility. If you would invest 1,876 in Touchstone International Medical on September 4, 2024 and sell it today you would earn a total of 129.00 from holding Touchstone International Medical or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Touchstone International Medic
Performance |
| Timeline |
| Changchun BCHT Biote |
| Touchstone International |
Changchun BCHT and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Touchstone International
The main advantage of trading using opposite Changchun BCHT and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Changchun BCHT vs. Industrial and Commercial | Changchun BCHT vs. Agricultural Bank of | Changchun BCHT vs. China Construction Bank | Changchun BCHT vs. Bank of China |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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