Correlation Between Western Metal and Heilongjiang Publishing
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By analyzing existing cross correlation between Western Metal Materials and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Heilongjiang Publishing.
Diversification Opportunities for Western Metal and Heilongjiang Publishing
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Heilongjiang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Western Metal and Heilongjiang Publishing
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.4 times more return on investment than Heilongjiang Publishing. However, Western Metal is 1.4 times more volatile than Heilongjiang Publishing Media. It trades about -0.06 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 1,802 in Western Metal Materials on October 30, 2024 and sell it today you would lose (102.00) from holding Western Metal Materials or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Western Metal Materials |
| Heilongjiang Publishing |
Western Metal and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Heilongjiang Publishing
The main advantage of trading using opposite Western Metal and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
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 CEOs Directory module to screen CEOs from public companies around the world.
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