Correlation Between Chongqing Shunbo and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Heilongjiang Transport Development, you can compare the effects of market volatilities on Chongqing Shunbo 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 Chongqing Shunbo with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Heilongjiang Transport.
Diversification Opportunities for Chongqing Shunbo and Heilongjiang Transport
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Heilongjiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Chongqing Shunbo 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 Chongqing Shunbo Aluminum 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 Chongqing Shunbo i.e., Chongqing Shunbo and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Heilongjiang Transport
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Shunbo Aluminum is 1.25 times less risky than Heilongjiang Transport. The stock trades about -0.03 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Heilongjiang Transport Development on September 3, 2024 and sell it today you would earn a total of 83.00 from holding Heilongjiang Transport Development or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Heilongjiang Transport |
Chongqing Shunbo and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Heilongjiang Transport
The main advantage of trading using opposite Chongqing Shunbo and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo 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.| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Hoshine Silicon Ind |
| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |