Correlation Between Shandong and Heilongjiang Publishing
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By analyzing existing cross correlation between Shandong Hi Speed RoadBridge and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Shandong and Heilongjiang Publishing 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 Shandong with a short position of Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong and Heilongjiang Publishing.
Diversification Opportunities for Shandong and Heilongjiang Publishing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Heilongjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hi Speed RoadBridge and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing and Shandong 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 Shandong Hi Speed RoadBridge are associated (or correlated) with Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Shandong i.e., Shandong and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Shandong and Heilongjiang Publishing
Assuming the 90 days trading horizon Shandong Hi Speed RoadBridge is expected to generate 0.48 times more return on investment than Heilongjiang Publishing. However, Shandong Hi Speed RoadBridge is 2.09 times less risky than Heilongjiang Publishing. It trades about -0.02 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.12 per unit of risk. If you would invest 615.00 in Shandong Hi Speed RoadBridge on September 27, 2024 and sell it today you would lose (5.00) from holding Shandong Hi Speed RoadBridge or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Hi Speed RoadBridge vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Shandong Hi Speed |
| Heilongjiang Publishing |
Shandong and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong and Heilongjiang Publishing
The main advantage of trading using opposite Shandong and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Shandong vs. Ming Yang Smart | Shandong vs. 159681 | Shandong vs. 159005 | Shandong vs. Loctek Ergonomic Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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