Correlation Between HeBei Jinniu and Telling Telecommunicatio
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Telling Telecommunication Holding, you can compare the effects of market volatilities on HeBei Jinniu and Telling Telecommunicatio 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 HeBei Jinniu with a short position of Telling Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Telling Telecommunicatio.
Diversification Opportunities for HeBei Jinniu and Telling Telecommunicatio
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeBei and Telling is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Telling Telecommunication Hold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telling Telecommunicatio and HeBei Jinniu 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 HeBei Jinniu Chemical are associated (or correlated) with Telling Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telling Telecommunicatio has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and Telling Telecommunicatio go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Telling Telecommunicatio
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.0 times more return on investment than Telling Telecommunicatio. However, HeBei Jinniu is 1.0 times more volatile than Telling Telecommunication Holding. It trades about 0.03 of its potential returns per unit of risk. Telling Telecommunication Holding is currently generating about -0.33 per unit of risk. If you would invest 560.00 in HeBei Jinniu Chemical on October 16, 2024 and sell it today you would earn a total of 5.00 from holding HeBei Jinniu Chemical or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Telling Telecommunication Hold
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Telling Telecommunicatio |
HeBei Jinniu and Telling Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Telling Telecommunicatio
The main advantage of trading using opposite HeBei Jinniu and Telling Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, Telling Telecommunicatio 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 Telling Telecommunicatio will offset losses from the drop in Telling Telecommunicatio's long position.| HeBei Jinniu vs. Beijing YanDong MicroElectronic | HeBei Jinniu vs. Ningbo Kangqiang Electronics | HeBei Jinniu vs. Hefei Metalforming Mach | HeBei Jinniu vs. Guangdong Jingyi Metal |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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