Correlation Between HeBei Jinniu and Songcheng Performance
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Songcheng Performance Develop, you can compare the effects of market volatilities on HeBei Jinniu and Songcheng Performance 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 Songcheng Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Songcheng Performance.
Diversification Opportunities for HeBei Jinniu and Songcheng Performance
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeBei and Songcheng is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Songcheng Performance Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songcheng Performance 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 Songcheng Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songcheng Performance has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and Songcheng Performance go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Songcheng Performance
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.23 times more return on investment than Songcheng Performance. However, HeBei Jinniu is 1.23 times more volatile than Songcheng Performance Develop. It trades about 0.08 of its potential returns per unit of risk. Songcheng Performance Develop is currently generating about -0.07 per unit of risk. If you would invest 562.00 in HeBei Jinniu Chemical on November 27, 2024 and sell it today you would earn a total of 12.00 from holding HeBei Jinniu Chemical or generate 2.14% 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. Songcheng Performance Develop
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Songcheng Performance |
HeBei Jinniu and Songcheng Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Songcheng Performance
The main advantage of trading using opposite HeBei Jinniu and Songcheng Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, Songcheng Performance 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 Songcheng Performance will offset losses from the drop in Songcheng Performance's long position.| HeBei Jinniu vs. Vanfund Urban Investment | HeBei Jinniu vs. Jointo Energy Investment | HeBei Jinniu vs. Henan Shuanghui Investment | HeBei Jinniu vs. Hubei Geoway Investment |
| Songcheng Performance vs. China Asset Management | Songcheng Performance vs. Quectel Wireless Solutions | Songcheng Performance vs. Cicc Fund Management | Songcheng Performance vs. Ingenic Semiconductor |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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