Correlation Between Puyang Huicheng and Inner Mongolia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Puyang Huicheng Electronic and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Puyang Huicheng and Inner Mongolia 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 Puyang Huicheng with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and Inner Mongolia.
Diversification Opportunities for Puyang Huicheng and Inner Mongolia
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Puyang and Inner is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou and Puyang Huicheng 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 Puyang Huicheng Electronic are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Puyang Huicheng i.e., Puyang Huicheng and Inner Mongolia go up and down completely randomly.
Pair Corralation between Puyang Huicheng and Inner Mongolia
Assuming the 90 days trading horizon Puyang Huicheng is expected to generate 1.04 times less return on investment than Inner Mongolia. In addition to that, Puyang Huicheng is 1.1 times more volatile than Inner Mongolia BaoTou. It trades about 0.15 of its total potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about 0.17 per unit of volatility. If you would invest 142.00 in Inner Mongolia BaoTou on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Inner Mongolia BaoTou or generate 35.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. Inner Mongolia BaoTou
Performance |
| Timeline |
| Puyang Huicheng Elec |
| Inner Mongolia BaoTou |
Puyang Huicheng and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and Inner Mongolia
The main advantage of trading using opposite Puyang Huicheng and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng vs. Rongsheng Petrochemical Co | Puyang Huicheng vs. Hoshine Silicon Ind |
| Inner Mongolia vs. Zijin Mining Group | Inner Mongolia vs. Baoshan Iron Steel | Inner Mongolia vs. Rongsheng Petrochemical Co | Inner Mongolia vs. Hoshine Silicon Ind |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |