Correlation Between Zhejiang JIULI and Heilongjiang Transport
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Heilongjiang Transport Development, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Heilongjiang Transport.
Diversification Opportunities for Zhejiang JIULI and Heilongjiang Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Heilongjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Heilongjiang Transport
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.56 times more return on investment than Heilongjiang Transport. However, Zhejiang JIULI Hi tech is 1.79 times less risky than Heilongjiang Transport. It trades about 0.07 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.03 per unit of risk. If you would invest 1,540 in Zhejiang JIULI Hi tech on August 29, 2024 and sell it today you would earn a total of 812.00 from holding Zhejiang JIULI Hi tech or generate 52.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Heilongjiang Transport |
Zhejiang JIULI and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Heilongjiang Transport
The main advantage of trading using opposite Zhejiang JIULI and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Shandong Gold Mining | Zhejiang JIULI vs. Rongsheng Petrochemical Co | Zhejiang JIULI vs. Inner Mongolia BaoTou |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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