Correlation Between Cangzhou Mingzhu and Henan Lantian
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Henan Lantian Gas, you can compare the effects of market volatilities on Cangzhou Mingzhu and Henan Lantian 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 Cangzhou Mingzhu with a short position of Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Henan Lantian.
Diversification Opportunities for Cangzhou Mingzhu and Henan Lantian
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cangzhou and Henan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Henan Lantian go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Henan Lantian
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Henan Lantian. In addition to that, Cangzhou Mingzhu is 1.09 times more volatile than Henan Lantian Gas. It trades about 0.0 of its total potential returns per unit of risk. Henan Lantian Gas is currently generating about 0.06 per unit of volatility. If you would invest 775.00 in Henan Lantian Gas on September 4, 2024 and sell it today you would earn a total of 344.00 from holding Henan Lantian Gas or generate 44.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Henan Lantian Gas
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Henan Lantian Gas |
Cangzhou Mingzhu and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Henan Lantian
The main advantage of trading using opposite Cangzhou Mingzhu and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Air China Ltd | Cangzhou Mingzhu vs. Fujian Forecam Optics | Cangzhou Mingzhu vs. iSoftStone Information Technology |
| Henan Lantian vs. Agricultural Bank of | Henan Lantian vs. Industrial and Commercial | Henan Lantian vs. Bank of China | Henan Lantian vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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