Correlation Between Linzhou Heavy and Gansu Huangtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Linzhou Heavy Machinery and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Linzhou Heavy and Gansu Huangtai 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 Linzhou Heavy with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linzhou Heavy and Gansu Huangtai.
Diversification Opportunities for Linzhou Heavy and Gansu Huangtai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Linzhou and Gansu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Linzhou Heavy Machinery and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Linzhou Heavy 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 Linzhou Heavy Machinery are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Linzhou Heavy i.e., Linzhou Heavy and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Linzhou Heavy and Gansu Huangtai
Assuming the 90 days trading horizon Linzhou Heavy is expected to generate 3.08 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Linzhou Heavy Machinery is 1.25 times less risky than Gansu Huangtai. It trades about 0.03 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 995.00 in Gansu Huangtai Wine marketing on November 3, 2024 and sell it today you would earn a total of 481.00 from holding Gansu Huangtai Wine marketing or generate 48.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linzhou Heavy Machinery vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Linzhou Heavy Machinery |
| Gansu Huangtai Wine |
Linzhou Heavy and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linzhou Heavy and Gansu Huangtai
The main advantage of trading using opposite Linzhou Heavy and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linzhou Heavy position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Linzhou Heavy vs. Tibet Huayu Mining | Linzhou Heavy vs. Citic Offshore Helicopter | Linzhou Heavy vs. Anhui Jinhe Industrial | Linzhou Heavy vs. Heilongjiang Transport Development |
| Gansu Huangtai vs. Harbin Air Conditioning | Gansu Huangtai vs. Dr Peng Telecom | Gansu Huangtai vs. Vats Liquor Chain | Gansu Huangtai vs. China Sports Industry |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |