Correlation Between Heilongjiang Transport and Lier Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and Lier Chemical Co, you can compare the effects of market volatilities on Heilongjiang Transport and Lier Chemical 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 Lier Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Lier Chemical.
Diversification Opportunities for Heilongjiang Transport and Lier Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heilongjiang and Lier is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Lier Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lier Chemical 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 Lier Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lier Chemical has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Lier Chemical go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Lier Chemical
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.1 times more return on investment than Lier Chemical. However, Heilongjiang Transport is 1.1 times more volatile than Lier Chemical Co. It trades about 0.23 of its potential returns per unit of risk. Lier Chemical Co is currently generating about 0.07 per unit of risk. If you would invest 374.00 in Heilongjiang Transport Development on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Heilongjiang Transport Development or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Lier Chemical Co
Performance |
| Timeline |
| Heilongjiang Transport |
| Lier Chemical |
Heilongjiang Transport and Lier Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Lier Chemical
The main advantage of trading using opposite Heilongjiang Transport and Lier Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Lier Chemical 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 Lier Chemical will offset losses from the drop in Lier Chemical's long position.| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
| Lier Chemical vs. Zijin Mining Group | Lier Chemical vs. Wanhua Chemical Group | Lier Chemical vs. Baoshan Iron Steel | Lier Chemical vs. Shandong Gold Mining |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |