Correlation Between Huaneng Lancang and Jiangsu Pacific
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By analyzing existing cross correlation between Huaneng Lancang River and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Huaneng Lancang and Jiangsu Pacific 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 Huaneng Lancang with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Lancang and Jiangsu Pacific.
Diversification Opportunities for Huaneng Lancang and Jiangsu Pacific
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huaneng and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Lancang River and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Huaneng Lancang 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 Huaneng Lancang River are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Huaneng Lancang i.e., Huaneng Lancang and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Huaneng Lancang and Jiangsu Pacific
Assuming the 90 days trading horizon Huaneng Lancang River is expected to generate 0.39 times more return on investment than Jiangsu Pacific. However, Huaneng Lancang River is 2.58 times less risky than Jiangsu Pacific. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.08 per unit of risk. If you would invest 706.00 in Huaneng Lancang River on November 27, 2024 and sell it today you would earn a total of 171.00 from holding Huaneng Lancang River or generate 24.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaneng Lancang River vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Huaneng Lancang River |
| Jiangsu Pacific Quartz |
Huaneng Lancang and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaneng Lancang and Jiangsu Pacific
The main advantage of trading using opposite Huaneng Lancang and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Lancang position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Huaneng Lancang vs. Harbin Hatou Investment | Huaneng Lancang vs. Postal Savings Bank | Huaneng Lancang vs. China Publishing Media | Huaneng Lancang vs. Chengdu Xingrong Investment |
| Jiangsu Pacific vs. Sanbo Hospital Management | Jiangsu Pacific vs. Rising Nonferrous Metals | Jiangsu Pacific vs. Yoantion Industrial IncLtd | Jiangsu Pacific vs. China Reform Health |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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