Correlation Between Tengda Construction and Heilongjiang Agriculture
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By analyzing existing cross correlation between Tengda Construction Group and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on Tengda Construction and Heilongjiang Agriculture 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 Tengda Construction with a short position of Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Heilongjiang Agriculture.
Diversification Opportunities for Tengda Construction and Heilongjiang Agriculture
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tengda and Heilongjiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture and Tengda Construction 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 Tengda Construction Group are associated (or correlated) with Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of Tengda Construction i.e., Tengda Construction and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between Tengda Construction and Heilongjiang Agriculture
Assuming the 90 days trading horizon Tengda Construction Group is expected to under-perform the Heilongjiang Agriculture. In addition to that, Tengda Construction is 1.12 times more volatile than Heilongjiang Agriculture Co. It trades about -0.13 of its total potential returns per unit of risk. Heilongjiang Agriculture Co is currently generating about -0.12 per unit of volatility. If you would invest 1,475 in Heilongjiang Agriculture Co on November 1, 2024 and sell it today you would lose (52.00) from holding Heilongjiang Agriculture Co or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| Tengda Construction |
| Heilongjiang Agriculture |
Tengda Construction and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Heilongjiang Agriculture
The main advantage of trading using opposite Tengda Construction and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction position performs unexpectedly, Heilongjiang Agriculture 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 Agriculture will offset losses from the drop in Heilongjiang Agriculture's long position.| Tengda Construction vs. JCHX Mining Management | Tengda Construction vs. Jilin Jlu Communication | Tengda Construction vs. AVIC Fund Management | Tengda Construction vs. Harvest Fund Management |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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