Correlation Between Caihong Display and Heilongjiang Transport
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By analyzing existing cross correlation between Caihong Display Devices and Heilongjiang Transport Development, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Heilongjiang Transport.
Diversification Opportunities for Caihong Display and Heilongjiang Transport
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Caihong and Heilongjiang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Caihong Display and Heilongjiang Transport
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 0.86 times more return on investment than Heilongjiang Transport. However, Caihong Display Devices is 1.17 times less risky than Heilongjiang Transport. It trades about 0.05 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of risk. If you would invest 463.00 in Caihong Display Devices on October 16, 2024 and sell it today you would earn a total of 322.00 from holding Caihong Display Devices or generate 69.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Caihong Display Devices |
| Heilongjiang Transport |
Caihong Display and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Heilongjiang Transport
The main advantage of trading using opposite Caihong Display and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Great Sun Foods Co | Caihong Display vs. Vanfund Urban Investment | Caihong Display vs. Zhongrun Resources Investment | Caihong Display vs. Kunwu Jiuding Investment |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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