Correlation Between HeBei Jinniu and De Rucci
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By analyzing existing cross correlation between HeBei Jinniu Chemical and De Rucci Healthy, you can compare the effects of market volatilities on HeBei Jinniu and De Rucci 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 De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and De Rucci.
Diversification Opportunities for HeBei Jinniu and De Rucci
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeBei and 001323 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy 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 De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and De Rucci go up and down completely randomly.
Pair Corralation between HeBei Jinniu and De Rucci
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to under-perform the De Rucci. In addition to that, HeBei Jinniu is 2.39 times more volatile than De Rucci Healthy. It trades about -0.1 of its total potential returns per unit of risk. De Rucci Healthy is currently generating about 0.05 per unit of volatility. If you would invest 3,741 in De Rucci Healthy on October 11, 2024 and sell it today you would earn a total of 53.00 from holding De Rucci Healthy or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. De Rucci Healthy
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| De Rucci Healthy |
HeBei Jinniu and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and De Rucci
The main advantage of trading using opposite HeBei Jinniu and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.| HeBei Jinniu vs. Zijin Mining Group | HeBei Jinniu vs. Wanhua Chemical Group | HeBei Jinniu vs. Baoshan Iron Steel | HeBei Jinniu vs. Shandong Gold Mining |
| De Rucci vs. Sunny Loan Top | De Rucci vs. HeBei Jinniu Chemical | De Rucci vs. Nanning Chemical Industry | De Rucci vs. China Everbright Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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