Correlation Between China Longyuan and Tangshan Port
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By analyzing existing cross correlation between China Longyuan Power and Tangshan Port Group, you can compare the effects of market volatilities on China Longyuan and Tangshan Port 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 China Longyuan with a short position of Tangshan Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Longyuan and Tangshan Port.
Diversification Opportunities for China Longyuan and Tangshan Port
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Tangshan is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Longyuan Power and Tangshan Port Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangshan Port Group and China Longyuan 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 China Longyuan Power are associated (or correlated) with Tangshan Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangshan Port Group has no effect on the direction of China Longyuan i.e., China Longyuan and Tangshan Port go up and down completely randomly.
Pair Corralation between China Longyuan and Tangshan Port
Assuming the 90 days trading horizon China Longyuan Power is expected to generate 1.47 times more return on investment than Tangshan Port. However, China Longyuan is 1.47 times more volatile than Tangshan Port Group. It trades about 0.13 of its potential returns per unit of risk. Tangshan Port Group is currently generating about -0.05 per unit of risk. If you would invest 1,389 in China Longyuan Power on September 12, 2024 and sell it today you would earn a total of 297.00 from holding China Longyuan Power or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
China Longyuan Power vs. Tangshan Port Group
Performance |
| Timeline |
| China Longyuan Power |
| Tangshan Port Group |
China Longyuan and Tangshan Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Longyuan and Tangshan Port
The main advantage of trading using opposite China Longyuan and Tangshan Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Longyuan position performs unexpectedly, Tangshan Port 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 Tangshan Port will offset losses from the drop in Tangshan Port's long position.| China Longyuan vs. Gansu Jiu Steel | China Longyuan vs. Shandong Mining Machinery | China Longyuan vs. Aba Chemicals Corp | China Longyuan vs. BlueFocus Communication Group |
| Tangshan Port vs. Beijing SPC Environment | Tangshan Port vs. Gansu Jiu Steel | Tangshan Port vs. Shanghai Broadband Technology | Tangshan Port vs. Silkroad Visual 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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