Correlation Between Hubeiyichang Transportation and Jinzhou Port
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubeiyichang Transportation Group and Jinzhou Port Co, you can compare the effects of market volatilities on Hubeiyichang Transportation and Jinzhou Port 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 Hubeiyichang Transportation with a short position of Jinzhou Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Jinzhou Port.
Diversification Opportunities for Hubeiyichang Transportation and Jinzhou Port
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubeiyichang and Jinzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Jinzhou Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzhou Port and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group are associated (or correlated) with Jinzhou Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzhou Port has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Jinzhou Port go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Jinzhou Port
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.7 times more return on investment than Jinzhou Port. However, Hubeiyichang Transportation Group is 1.43 times less risky than Jinzhou Port. It trades about 0.02 of its potential returns per unit of risk. Jinzhou Port Co is currently generating about -0.03 per unit of risk. If you would invest 540.00 in Hubeiyichang Transportation Group on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Hubeiyichang Transportation Group or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Jinzhou Port Co
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Jinzhou Port |
Hubeiyichang Transportation and Jinzhou Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Jinzhou Port
The main advantage of trading using opposite Hubeiyichang Transportation and Jinzhou Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Jinzhou Port 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 Jinzhou Port will offset losses from the drop in Jinzhou Port's long position.The idea behind Hubeiyichang Transportation Group and Jinzhou Port Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jinzhou Port vs. Hubeiyichang Transportation Group | Jinzhou Port vs. Jiangsu Broadcasting Cable | Jinzhou Port vs. Dazhong Transportation Group | Jinzhou Port vs. Zhengping RoadBridge Constr |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |