Correlation Between Heilongjiang Transport and Ningbo Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Heilongjiang Transport and Ningbo Tech 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 Heilongjiang Transport with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Ningbo Tech.
Diversification Opportunities for Heilongjiang Transport and Ningbo Tech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Ningbo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Heilongjiang Transport 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 Heilongjiang Transport Development are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Ningbo Tech go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Ningbo Tech
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.59 times more return on investment than Ningbo Tech. However, Heilongjiang Transport Development is 1.69 times less risky than Ningbo Tech. It trades about 0.18 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.09 per unit of risk. 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 |
Heilongjiang Transport Develop vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Heilongjiang Transport |
| Ningbo Tech Bank |
Heilongjiang Transport and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Ningbo Tech
The main advantage of trading using opposite Heilongjiang Transport and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Heilongjiang Transport vs. China Life Insurance | Heilongjiang Transport vs. Cinda Securities Co | Heilongjiang Transport vs. Piotech Inc A | Heilongjiang Transport vs. Dongxing Sec Co |
| Ningbo Tech vs. Bomin Electronics Co | Ningbo Tech vs. Fuzhou Rockchip Electronics | Ningbo Tech vs. Guangzhou Zhujiang Brewery | Ningbo Tech vs. Leaguer Shenzhen MicroElectronics |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |