Correlation Between Jiangsu Yanghe and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Heilongjiang Transport Development, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Heilongjiang Transport.
Diversification Opportunities for Jiangsu Yanghe and Heilongjiang Transport
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Heilongjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Heilongjiang Transport
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Heilongjiang Transport. In addition to that, Jiangsu Yanghe is 1.31 times more volatile than Heilongjiang Transport Development. It trades about -0.05 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.13 per unit of volatility. If you would invest 357.00 in Heilongjiang Transport Development on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Heilongjiang Transport Development or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Heilongjiang Transport |
Jiangsu Yanghe and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Heilongjiang Transport
The main advantage of trading using opposite Jiangsu Yanghe and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. BYD Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Industrial and Commercial |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. China Construction Bank | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Bank of China |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |