Correlation Between HeBei Jinniu and China Building
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By analyzing existing cross correlation between HeBei Jinniu Chemical and China Building Material, you can compare the effects of market volatilities on HeBei Jinniu and China Building 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 Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and China Building.
Diversification Opportunities for HeBei Jinniu and China Building
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeBei and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and China Building go up and down completely randomly.
Pair Corralation between HeBei Jinniu and China Building
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.29 times more return on investment than China Building. However, HeBei Jinniu is 1.29 times more volatile than China Building Material. It trades about 0.12 of its potential returns per unit of risk. China Building Material is currently generating about 0.01 per unit of risk. If you would invest 422.00 in HeBei Jinniu Chemical on October 14, 2024 and sell it today you would earn a total of 115.00 from holding HeBei Jinniu Chemical or generate 27.25% 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. China Building Material
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| China Building Material |
HeBei Jinniu and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and China Building
The main advantage of trading using opposite HeBei Jinniu and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, China Building 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 Building will offset losses from the drop in China Building's long position.| HeBei Jinniu vs. Liaoning Dingjide Petrochemical | HeBei Jinniu vs. Qtone Education Group | HeBei Jinniu vs. Shenyang Chemical Industry | HeBei Jinniu vs. Dosilicon Co |
| China Building vs. Qilu Bank Co | China Building vs. HeBei Jinniu Chemical | China Building vs. Unisplendour Corp | China Building vs. Longxing Chemical Stock |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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