Correlation Between Cinda Securities and Heilongjiang Transport
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By analyzing existing cross correlation between Cinda Securities Co and Heilongjiang Transport Development, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Heilongjiang Transport.
Diversification Opportunities for Cinda Securities and Heilongjiang Transport
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Heilongjiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Cinda Securities and Heilongjiang Transport
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Heilongjiang Transport. In addition to that, Cinda Securities is 1.54 times more volatile than Heilongjiang Transport Development. It trades about -0.06 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.18 per unit of volatility. If you would invest 371.00 in Heilongjiang Transport Development on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Heilongjiang Transport Development or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Cinda Securities |
| Heilongjiang Transport |
Cinda Securities and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Heilongjiang Transport
The main advantage of trading using opposite Cinda Securities and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. Biwin Storage Technology | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. Industrial and Commercial | Cinda Securities vs. China Construction Bank |
| Heilongjiang Transport vs. China Life Insurance | Heilongjiang Transport vs. Cinda Securities Co | Heilongjiang Transport vs. Piotech Inc A | Heilongjiang Transport vs. Dongxing Sec Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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