Correlation Between Heilongjiang Transport and Konfoong Materials
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By analyzing existing cross correlation between Heilongjiang Transport Development and Konfoong Materials International, you can compare the effects of market volatilities on Heilongjiang Transport and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Konfoong Materials.
Diversification Opportunities for Heilongjiang Transport and Konfoong Materials
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Konfoong is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Konfoong Materials go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Konfoong Materials
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to under-perform the Konfoong Materials. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Transport Development is 1.1 times less risky than Konfoong Materials. The stock trades about -0.55 of its potential returns per unit of risk. The Konfoong Materials International is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 7,558 in Konfoong Materials International on October 13, 2024 and sell it today you would lose (889.00) from holding Konfoong Materials International or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Konfoong Materials Internation
Performance |
| Timeline |
| Heilongjiang Transport |
| Konfoong Materials |
Heilongjiang Transport and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Konfoong Materials
The main advantage of trading using opposite Heilongjiang Transport and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' 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 |
| Konfoong Materials vs. Peoples Insurance of | Konfoong Materials vs. Sportsoul Co Ltd | Konfoong Materials vs. Heilongjiang Transport Development | Konfoong Materials vs. Fujian Longzhou Transportation |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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