Correlation Between Changchun BCHT and ACM Research
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and ACM Research Shanghai, you can compare the effects of market volatilities on Changchun BCHT and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and ACM Research.
Diversification Opportunities for Changchun BCHT and ACM Research
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and ACM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and ACM Research go up and down completely randomly.
Pair Corralation between Changchun BCHT and ACM Research
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the ACM Research. In addition to that, Changchun BCHT is 1.16 times more volatile than ACM Research Shanghai. It trades about -0.44 of its total potential returns per unit of risk. ACM Research Shanghai is currently generating about -0.19 per unit of volatility. If you would invest 10,405 in ACM Research Shanghai on October 30, 2024 and sell it today you would lose (625.00) from holding ACM Research Shanghai or give up 6.01% 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. ACM Research Shanghai
Performance |
| Timeline |
| Changchun BCHT Biote |
| ACM Research Shanghai |
Changchun BCHT and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and ACM Research
The main advantage of trading using opposite Changchun BCHT and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research's long position.| Changchun BCHT vs. GreenTech Environmental Co | Changchun BCHT vs. Shanghai CEO Environmental | Changchun BCHT vs. Cansino Biologics | Changchun BCHT vs. Shenzhen MYS Environmental |
| ACM Research vs. Bangyan Technology Co | ACM Research vs. Porton Fine Chemicals | ACM Research vs. Thinkon Semiconductor Jinzhou | ACM Research vs. Zbit Semiconductor A |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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