Correlation Between Chongqing Shunbo and Piotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Piotech Inc A, you can compare the effects of market volatilities on Chongqing Shunbo and Piotech 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 Chongqing Shunbo with a short position of Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Piotech.
Diversification Opportunities for Chongqing Shunbo and Piotech
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Piotech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A and Chongqing Shunbo 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 Chongqing Shunbo Aluminum are associated (or correlated) with Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Piotech go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Piotech
Assuming the 90 days trading horizon Chongqing Shunbo is expected to generate 2.13 times less return on investment than Piotech. But when comparing it to its historical volatility, Chongqing Shunbo Aluminum is 1.83 times less risky than Piotech. It trades about 0.14 of its potential returns per unit of risk. Piotech Inc A is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 11,060 in Piotech Inc A on September 26, 2024 and sell it today you would earn a total of 5,950 from holding Piotech Inc A or generate 53.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Piotech Inc A
Performance |
Timeline |
Chongqing Shunbo Aluminum |
Piotech Inc A |
Chongqing Shunbo and Piotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Shunbo and Piotech
The main advantage of trading using opposite Chongqing Shunbo and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Inner Mongolia BaoTou |
Piotech vs. Ping An Insurance | Piotech vs. Guangzhou KingTeller Technology | Piotech vs. Hefei Metalforming Mach | Piotech vs. Chongqing Shunbo Aluminum |
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.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies |