Correlation Between Beijing Mainstreets and Heilongjiang Transport
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Heilongjiang Transport Development, you can compare the effects of market volatilities on Beijing Mainstreets and Heilongjiang Transport 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 Beijing Mainstreets with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Heilongjiang Transport.
Diversification Opportunities for Beijing Mainstreets and Heilongjiang Transport
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Heilongjiang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Heilongjiang Transport
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Heilongjiang Transport. In addition to that, Beijing Mainstreets is 1.22 times more volatile than Heilongjiang Transport Development. It trades about -0.1 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of volatility. If you would invest 428.00 in Heilongjiang Transport Development on September 14, 2024 and sell it today you would lose (4.00) from holding Heilongjiang Transport Development or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Beijing Mainstreets |
| Heilongjiang Transport |
Beijing Mainstreets and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Heilongjiang Transport
The main advantage of trading using opposite Beijing Mainstreets and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Heilongjiang Transport 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 Transport will offset losses from the drop in Heilongjiang Transport's long position.| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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