Correlation Between Changchun BCHT and GreenTech Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun BCHT Biotechnology and GreenTech Environmental Co, you can compare the effects of market volatilities on Changchun BCHT and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and GreenTech Environmental.
Diversification Opportunities for Changchun BCHT and GreenTech Environmental
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changchun and GreenTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Changchun BCHT and GreenTech Environmental
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.12 times less risky than GreenTech Environmental. The stock trades about -0.07 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,348 in GreenTech Environmental Co on October 18, 2024 and sell it today you would earn a total of 8.00 from holding GreenTech Environmental Co or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. GreenTech Environmental Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| GreenTech Environmental |
Changchun BCHT and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and GreenTech Environmental
The main advantage of trading using opposite Changchun BCHT and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Changchun BCHT vs. Shanghai Action Education | Changchun BCHT vs. Duzhe Publishing Media | Changchun BCHT vs. Jiangsu Phoenix Publishing | Changchun BCHT vs. COL Digital Publishing |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |