Correlation Between Heilongjiang Transport and Jiangsu Yike
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By analyzing existing cross correlation between Heilongjiang Transport Development and Jiangsu Yike Food, you can compare the effects of market volatilities on Heilongjiang Transport and Jiangsu Yike 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 Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Jiangsu Yike.
Diversification Opportunities for Heilongjiang Transport and Jiangsu Yike
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food 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 Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Jiangsu Yike go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Jiangsu Yike
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.48 times more return on investment than Jiangsu Yike. However, Heilongjiang Transport Development is 2.09 times less risky than Jiangsu Yike. It trades about -0.27 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about -0.15 per unit of risk. If you would invest 395.00 in Heilongjiang Transport Development on October 9, 2024 and sell it today you would lose (58.00) from holding Heilongjiang Transport Development or give up 14.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Jiangsu Yike Food
Performance |
| Timeline |
| Heilongjiang Transport |
| Jiangsu Yike Food |
Heilongjiang Transport and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Jiangsu Yike
The main advantage of trading using opposite Heilongjiang Transport and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Jiangsu Yike 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 Jiangsu Yike will offset losses from the drop in Jiangsu Yike's long position.| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Construction Bank | Heilongjiang Transport vs. Bank of China |
| Jiangsu Yike vs. Tongling Nonferrous Metals | Jiangsu Yike vs. Road Environment Technology | Jiangsu Yike vs. Heilongjiang Transport Development | Jiangsu Yike vs. Aluminum Corp of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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