Correlation Between Heilongjiang Transport and Kunwu Jiuding
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By analyzing existing cross correlation between Heilongjiang Transport Development and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Heilongjiang Transport and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Kunwu Jiuding.
Diversification Opportunities for Heilongjiang Transport and Kunwu Jiuding
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Kunwu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Kunwu Jiuding
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 1.28 times less return on investment than Kunwu Jiuding. But when comparing it to its historical volatility, Heilongjiang Transport Development is 1.12 times less risky than Kunwu Jiuding. It trades about 0.03 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,264 in Kunwu Jiuding Investment on August 31, 2024 and sell it today you would earn a total of 361.00 from holding Kunwu Jiuding Investment or generate 28.56% 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. Kunwu Jiuding Investment
Performance |
| Timeline |
| Heilongjiang Transport |
| Kunwu Jiuding Investment |
Heilongjiang Transport and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Kunwu Jiuding
The main advantage of trading using opposite Heilongjiang Transport and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology Co |
| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Contemporary Amperex Technology | Kunwu Jiuding vs. G bits Network Technology | Kunwu Jiuding vs. BYD Co Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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