Correlation Between Heilongjiang Transport and Ningbo Ligong
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By analyzing existing cross correlation between Heilongjiang Transport Development and Ningbo Ligong Online, you can compare the effects of market volatilities on Heilongjiang Transport and Ningbo Ligong 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 Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Ningbo Ligong.
Diversification Opportunities for Heilongjiang Transport and Ningbo Ligong
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Heilongjiang and Ningbo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Ningbo Ligong
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.91 times more return on investment than Ningbo Ligong. However, Heilongjiang Transport Development is 1.1 times less risky than Ningbo Ligong. It trades about 0.18 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.06 per unit of risk. If you would invest 303.00 in Heilongjiang Transport Development on August 31, 2024 and sell it today you would earn a total of 85.00 from holding Heilongjiang Transport Development or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Ningbo Ligong Online
Performance |
| Timeline |
| Heilongjiang Transport |
| Ningbo Ligong Online |
Heilongjiang Transport and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Ningbo Ligong
The main advantage of trading using opposite Heilongjiang Transport and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong's long position.| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology Co |
| Ningbo Ligong vs. Qingdao Choho Industrial | Ningbo Ligong vs. Aurora Optoelectronics Co | Ningbo Ligong vs. Xinjiang Baodi Mining | Ningbo Ligong vs. Shandong Mining Machinery |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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