Correlation Between Tianjin Hi and Heilongjiang Transport
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Heilongjiang Transport Development, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Heilongjiang Transport.
Diversification Opportunities for Tianjin Hi and Heilongjiang Transport
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Heilongjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Tianjin Hi and Heilongjiang Transport
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Hi Tech Development is 1.11 times less risky than Heilongjiang Transport. The stock trades about -0.01 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Heilongjiang Transport Development on October 16, 2024 and sell it today you would earn a total of 31.00 from holding Heilongjiang Transport Development or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Tianjin Hi Tech |
| Heilongjiang Transport |
Tianjin Hi and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Heilongjiang Transport
The main advantage of trading using opposite Tianjin Hi and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. Eastroc Beverage Group | Tianjin Hi vs. V V Food | Tianjin Hi vs. XiaMen HongXin Electron tech | Tianjin Hi vs. Linewell Software Co |
| Heilongjiang Transport vs. Winner Medical Co | Heilongjiang Transport vs. Ningxia Younglight Chemicals | Heilongjiang Transport vs. Cowealth Medical China | Heilongjiang Transport vs. Jahen Household Products |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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