Correlation Between Bank of Jiangsu Co Ltd and Heilongjiang Transport
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By analyzing existing cross correlation between Bank of Jiangsu and Heilongjiang Transport Development, you can compare the effects of market volatilities on Bank of Jiangsu Co Ltd and Heilongjiang Transport 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 Bank of Jiangsu Co Ltd with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Jiangsu Co Ltd and Heilongjiang Transport.
Diversification Opportunities for Bank of Jiangsu Co Ltd and Heilongjiang Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Heilongjiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Jiangsu and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Bank of Jiangsu Co Ltd 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 Bank of Jiangsu are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Bank of Jiangsu Co Ltd i.e., Bank of Jiangsu Co Ltd and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Bank of Jiangsu Co Ltd and Heilongjiang Transport
Assuming the 90 days trading horizon Bank of Jiangsu Co Ltd is expected to generate 1.36 times less return on investment than Heilongjiang Transport. But when comparing it to its historical volatility, Bank of Jiangsu is 2.41 times less risky than Heilongjiang Transport. It trades about 0.06 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Heilongjiang Transport Development on September 10, 2024 and sell it today you would earn a total of 93.00 from holding Heilongjiang Transport Development or generate 30.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Jiangsu vs. Heilongjiang Transport Develop
Performance |
Timeline |
Bank of Jiangsu Co Ltd |
Heilongjiang Transport |
Bank of Jiangsu Co Ltd and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Jiangsu Co Ltd and Heilongjiang Transport
The main advantage of trading using opposite Bank of Jiangsu Co Ltd and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Jiangsu Co Ltd position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.Bank of Jiangsu Co Ltd vs. Lier Chemical Co | Bank of Jiangsu Co Ltd vs. Shanghai Broadband Technology | Bank of Jiangsu Co Ltd vs. Xilong Chemical Co | Bank of Jiangsu Co Ltd vs. HeBei Jinniu Chemical |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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