Correlation Between Changchun High and Orient Sec
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By analyzing existing cross correlation between Changchun High New and Orient Sec Co, you can compare the effects of market volatilities on Changchun High and Orient Sec 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 High with a short position of Orient Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Orient Sec.
Diversification Opportunities for Changchun High and Orient Sec
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Orient is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Orient Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Sec and Changchun High 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 High New are associated (or correlated) with Orient Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Sec has no effect on the direction of Changchun High i.e., Changchun High and Orient Sec go up and down completely randomly.
Pair Corralation between Changchun High and Orient Sec
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Orient Sec. In addition to that, Changchun High is 1.15 times more volatile than Orient Sec Co. It trades about -0.04 of its total potential returns per unit of risk. Orient Sec Co is currently generating about 0.03 per unit of volatility. If you would invest 884.00 in Orient Sec Co on September 24, 2024 and sell it today you would earn a total of 171.00 from holding Orient Sec Co or generate 19.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Changchun High New vs. Orient Sec Co
Performance |
Timeline |
Changchun High New |
Orient Sec |
Changchun High and Orient Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun High and Orient Sec
The main advantage of trading using opposite Changchun High and Orient Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Orient Sec 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 Orient Sec will offset losses from the drop in Orient Sec's long position.Changchun High vs. Western Metal Materials | Changchun High vs. Tongyu Communication | Changchun High vs. Chengtun Mining Group | Changchun High vs. Uroica Mining Safety |
Orient Sec vs. Kweichow Moutai Co | Orient Sec vs. Contemporary Amperex Technology | Orient Sec vs. G bits Network Technology | Orient Sec vs. BYD Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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