Correlation Between China Hongqiao and 33767BAC3
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Hongqiao Group and US33767BAC37, you can compare the effects of market volatilities on China Hongqiao and 33767BAC3 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 China Hongqiao with a short position of 33767BAC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Hongqiao and 33767BAC3.
Diversification Opportunities for China Hongqiao and 33767BAC3
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and 33767BAC3 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Hongqiao Group and US33767BAC37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US33767BAC37 and China Hongqiao 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 China Hongqiao Group are associated (or correlated) with 33767BAC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US33767BAC37 has no effect on the direction of China Hongqiao i.e., China Hongqiao and 33767BAC3 go up and down completely randomly.
Pair Corralation between China Hongqiao and 33767BAC3
Assuming the 90 days horizon China Hongqiao is expected to generate 79.25 times less return on investment than 33767BAC3. But when comparing it to its historical volatility, China Hongqiao Group is 66.5 times less risky than 33767BAC3. It trades about 0.08 of its potential returns per unit of risk. US33767BAC37 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,274 in US33767BAC37 on November 1, 2024 and sell it today you would earn a total of 608.00 from holding US33767BAC37 or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
China Hongqiao Group vs. US33767BAC37
Performance |
| Timeline |
| China Hongqiao Group |
| US33767BAC37 |
China Hongqiao and 33767BAC3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Hongqiao and 33767BAC3
The main advantage of trading using opposite China Hongqiao and 33767BAC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Hongqiao position performs unexpectedly, 33767BAC3 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 33767BAC3 will offset losses from the drop in 33767BAC3's long position.| China Hongqiao vs. Constellium Nv | China Hongqiao vs. Century Aluminum | China Hongqiao vs. Alcoa Corp | China Hongqiao vs. China Hongqiao Group |
| 33767BAC3 vs. Helmerich and Payne | 33767BAC3 vs. CVW CleanTech | 33767BAC3 vs. Transocean | 33767BAC3 vs. Drilling Tools International |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |