Correlation Between Shenzhen Noposion and Heilongjiang Transport
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Heilongjiang Transport Development, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Heilongjiang Transport.
Diversification Opportunities for Shenzhen Noposion and Heilongjiang Transport
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Heilongjiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Heilongjiang Transport
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.79 times more return on investment than Heilongjiang Transport. However, Shenzhen Noposion Agrochemicals is 1.27 times less risky than Heilongjiang Transport. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.01 per unit of risk. If you would invest 895.00 in Shenzhen Noposion Agrochemicals on August 25, 2024 and sell it today you would earn a total of 54.00 from holding Shenzhen Noposion Agrochemicals or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Shenzhen Noposion |
| Heilongjiang Transport |
Shenzhen Noposion and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Heilongjiang Transport
The main advantage of trading using opposite Shenzhen Noposion and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| Heilongjiang Transport vs. Jiangxi Naipu Mining | Heilongjiang Transport vs. Western Mining Co | Heilongjiang Transport vs. Lingyuan Iron Steel | Heilongjiang Transport vs. Chengtun Mining Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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