Correlation Between Aba Chemicals and Heilongjiang Transport
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By analyzing existing cross correlation between Aba Chemicals Corp and Heilongjiang Transport Development, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Heilongjiang Transport.
Diversification Opportunities for Aba Chemicals and Heilongjiang Transport
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aba and Heilongjiang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Aba Chemicals and Heilongjiang Transport
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Heilongjiang Transport. In addition to that, Aba Chemicals is 1.32 times more volatile than Heilongjiang Transport Development. It trades about -0.25 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.15 per unit of volatility. If you would invest 356.00 in Heilongjiang Transport Development on October 26, 2024 and sell it today you would lose (21.00) from holding Heilongjiang Transport Development or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Aba Chemicals Corp |
| Heilongjiang Transport |
Aba Chemicals and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Heilongjiang Transport
The main advantage of trading using opposite Aba Chemicals and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Qilu Bank Co | Aba Chemicals vs. Xinjiang Baodi Mining | Aba Chemicals vs. Guangdong Qunxing Toys | Aba Chemicals vs. HeNan Splendor Science |
| Heilongjiang Transport vs. PetroChina Co Ltd | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. CNOOC Limited | Heilongjiang Transport vs. Ping An Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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