Correlation Between HeBei Jinniu and China World
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By analyzing existing cross correlation between HeBei Jinniu Chemical and China World Trade, you can compare the effects of market volatilities on HeBei Jinniu and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and China World.
Diversification Opportunities for HeBei Jinniu and China World
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeBei and China is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and China World go up and down completely randomly.
Pair Corralation between HeBei Jinniu and China World
Assuming the 90 days trading horizon HeBei Jinniu is expected to generate 1.54 times less return on investment than China World. In addition to that, HeBei Jinniu is 1.46 times more volatile than China World Trade. It trades about 0.02 of its total potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of volatility. If you would invest 1,627 in China World Trade on October 16, 2024 and sell it today you would earn a total of 700.00 from holding China World Trade or generate 43.02% 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. China World Trade
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| China World Trade |
HeBei Jinniu and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and China World
The main advantage of trading using opposite HeBei Jinniu and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, China World 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 China World will offset losses from the drop in China World'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 |
| China World vs. Liuzhou Chemical Industry | China World vs. ROPEOK Technology Group | China World vs. HeBei Jinniu Chemical | China World vs. Hubei Forbon Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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