Correlation Between Beijing Sanyuan and Heilongjiang Transport
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Heilongjiang Transport Development, you can compare the effects of market volatilities on Beijing Sanyuan 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 Beijing Sanyuan with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Heilongjiang Transport.
Diversification Opportunities for Beijing Sanyuan and Heilongjiang Transport
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Heilongjiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Beijing Sanyuan 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 Beijing Sanyuan Foods 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 Beijing Sanyuan i.e., Beijing Sanyuan and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Heilongjiang Transport
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 1.69 times less return on investment than Heilongjiang Transport. But when comparing it to its historical volatility, Beijing Sanyuan Foods is 1.0 times less risky than Heilongjiang Transport. It trades about 0.12 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Heilongjiang Transport Development on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Heilongjiang Transport Development or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Heilongjiang Transport |
Beijing Sanyuan and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Heilongjiang Transport
The main advantage of trading using opposite Beijing Sanyuan and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan 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.| Beijing Sanyuan vs. Nanjing Putian Telecommunications | Beijing Sanyuan vs. Shenzhen Hifuture Electric | Beijing Sanyuan vs. Tianjin Realty Development | Beijing Sanyuan vs. Shenyang Huitian Thermal |
| Heilongjiang Transport vs. Ming Yang Smart | Heilongjiang Transport vs. 159681 | Heilongjiang Transport vs. 159005 | Heilongjiang Transport vs. Loctek Ergonomic Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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