Correlation Between Heilongjiang Transport and Anshan Senyuan
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By analyzing existing cross correlation between Heilongjiang Transport Development and Anshan Senyuan Road, you can compare the effects of market volatilities on Heilongjiang Transport and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Anshan Senyuan.
Diversification Opportunities for Heilongjiang Transport and Anshan Senyuan
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Heilongjiang and Anshan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Anshan Senyuan
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.68 times more return on investment than Anshan Senyuan. However, Heilongjiang Transport Development is 1.46 times less risky than Anshan Senyuan. It trades about -0.51 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.42 per unit of risk. If you would invest 417.00 in Heilongjiang Transport Development on October 14, 2024 and sell it today you would lose (89.00) from holding Heilongjiang Transport Development or give up 21.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Anshan Senyuan Road
Performance |
| Timeline |
| Heilongjiang Transport |
| Anshan Senyuan Road |
Heilongjiang Transport and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Anshan Senyuan
The main advantage of trading using opposite Heilongjiang Transport and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.The idea behind Heilongjiang Transport Development and Anshan Senyuan Road pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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