Correlation Between Changchun BCHT and Shandong Huifa
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Shandong Huifa Foodstuff, you can compare the effects of market volatilities on Changchun BCHT and Shandong Huifa 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 Shandong Huifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Shandong Huifa.
Diversification Opportunities for Changchun BCHT and Shandong Huifa
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changchun and Shandong is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Shandong Huifa Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Huifa Foodstuff 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 Shandong Huifa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Huifa Foodstuff has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Shandong Huifa go up and down completely randomly.
Pair Corralation between Changchun BCHT and Shandong Huifa
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Shandong Huifa. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.83 times less risky than Shandong Huifa. The stock trades about -0.09 of its potential returns per unit of risk. The Shandong Huifa Foodstuff is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,010 in Shandong Huifa Foodstuff on August 31, 2025 and sell it today you would earn a total of 311.00 from holding Shandong Huifa Foodstuff or generate 30.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Shandong Huifa Foodstuff
Performance |
| Timeline |
| Changchun BCHT Biote |
| Shandong Huifa Foodstuff |
Changchun BCHT and Shandong Huifa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Shandong Huifa
The main advantage of trading using opposite Changchun BCHT and Shandong Huifa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Shandong Huifa 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 Shandong Huifa will offset losses from the drop in Shandong Huifa's long position.| Changchun BCHT vs. Jiamei Food Packaging | Changchun BCHT vs. Citic Offshore Helicopter | Changchun BCHT vs. Guangdong Wens Foodstuff | Changchun BCHT vs. Great Sun Foods Co |
| Shandong Huifa vs. Muyuan Foodstuff Co | Shandong Huifa vs. Baoshan Iron Steel | Shandong Huifa vs. Youyou Foods Co | Shandong Huifa vs. Ligao Foods CoLtd |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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