Correlation Between Heilongjiang Transport and Jinlong Machinery
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By analyzing existing cross correlation between Heilongjiang Transport Development and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Heilongjiang Transport and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Jinlong Machinery.
Diversification Opportunities for Heilongjiang Transport and Jinlong Machinery
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heilongjiang and Jinlong is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Jinlong Machinery
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 3.41 times less return on investment than Jinlong Machinery. But when comparing it to its historical volatility, Heilongjiang Transport Development is 1.64 times less risky than Jinlong Machinery. It trades about 0.03 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Jinlong Machinery Electronic on October 13, 2024 and sell it today you would earn a total of 92.00 from holding Jinlong Machinery Electronic or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Heilongjiang Transport |
| Jinlong Machinery |
Heilongjiang Transport and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Jinlong Machinery
The main advantage of trading using opposite Heilongjiang Transport and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Heilongjiang Transport vs. Shanghai Ziyan Foods | Heilongjiang Transport vs. Jiangsu Xinri E Vehicle | Heilongjiang Transport vs. Sichuan Teway Food | Heilongjiang Transport vs. Suzhou Weizhixiang Food |
| Jinlong Machinery vs. Anhui Transport Consulting | Jinlong Machinery vs. Heilongjiang Transport Development | Jinlong Machinery vs. Xiangpiaopiao Food Co | Jinlong Machinery vs. Xinjiang Tianrun Dairy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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