Correlation Between Heilongjiang Transport and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Heilongjiang Transport and Ningbo Fangzheng 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 Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Ningbo Fangzheng.
Diversification Opportunities for Heilongjiang Transport and Ningbo Fangzheng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Ningbo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Ningbo Fangzheng
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 2.73 times less return on investment than Ningbo Fangzheng. But when comparing it to its historical volatility, Heilongjiang Transport Development is 1.33 times less risky than Ningbo Fangzheng. It trades about 0.06 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,638 in Ningbo Fangzheng Automobile on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Ningbo Fangzheng Automobile or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Heilongjiang Transport |
| Ningbo Fangzheng Aut |
Heilongjiang Transport and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Ningbo Fangzheng
The main advantage of trading using opposite Heilongjiang Transport and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Bank of China | Heilongjiang Transport vs. PetroChina Co Ltd |
| Ningbo Fangzheng vs. Lutian Machinery Co | Ningbo Fangzheng vs. PetroChina Co Ltd | Ningbo Fangzheng vs. Bank of China | Ningbo Fangzheng vs. Gansu Jiu Steel |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |