Correlation Between China Sports and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and Heilongjiang Transport Development, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Heilongjiang Transport.
Diversification Opportunities for China Sports and Heilongjiang Transport
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Heilongjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between China Sports and Heilongjiang Transport
Assuming the 90 days trading horizon China Sports Industry is expected to generate 1.32 times more return on investment than Heilongjiang Transport. However, China Sports is 1.32 times more volatile than Heilongjiang Transport Development. It trades about -0.21 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.37 per unit of risk. If you would invest 891.00 in China Sports Industry on October 12, 2024 and sell it today you would lose (133.00) from holding China Sports Industry or give up 14.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| China Sports Industry |
| Heilongjiang Transport |
China Sports and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Heilongjiang Transport
The main advantage of trading using opposite China Sports and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Sanbo Hospital Management | China Sports vs. Goodwill E Health | China Sports vs. Heren Health Co | China Sports vs. Sinofibers Technology Co |
| Heilongjiang Transport vs. Shanghai Ziyan Foods | Heilongjiang Transport vs. Jiangsu Xinri E Vehicle | Heilongjiang Transport vs. Sichuan Teway Food | Heilongjiang Transport vs. Suzhou Weizhixiang Food |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |