Correlation Between Bank of XiAn and Heilongjiang Transport
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By analyzing existing cross correlation between Bank of XiAn and Heilongjiang Transport Development, you can compare the effects of market volatilities on Bank of XiAn 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 XiAn with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn and Heilongjiang Transport.
Diversification Opportunities for Bank of XiAn and Heilongjiang Transport
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Heilongjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn 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 XiAn 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 XiAn 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 XiAn i.e., Bank of XiAn and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Bank of XiAn and Heilongjiang Transport
Assuming the 90 days trading horizon Bank of XiAn is expected to generate 0.5 times more return on investment than Heilongjiang Transport. However, Bank of XiAn is 1.99 times less risky than Heilongjiang Transport. It trades about 0.04 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of risk. If you would invest 335.00 in Bank of XiAn on September 14, 2024 and sell it today you would earn a total of 52.00 from holding Bank of XiAn or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Bank of XiAn vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Bank of XiAn |
| Heilongjiang Transport |
Bank of XiAn and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn and Heilongjiang Transport
The main advantage of trading using opposite Bank of XiAn and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn 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 XiAn vs. Cultural Investment Holdings | Bank of XiAn vs. Gome Telecom Equipment | Bank of XiAn vs. Holitech Technology Co | Bank of XiAn vs. Zotye Automobile Co |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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