Correlation Between Heilongjiang Transport and China Sports
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By analyzing existing cross correlation between Heilongjiang Transport Development and China Sports Industry, you can compare the effects of market volatilities on Heilongjiang Transport and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and China Sports.
Diversification Opportunities for Heilongjiang Transport and China Sports
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and China Sports go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and China Sports
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to under-perform the China Sports. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Transport Development is 1.32 times less risky than China Sports. The stock trades about -0.37 of its potential returns per unit of risk. The China Sports Industry is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 891.00 in China Sports Industry on October 12, 2024 and sell it today you would lose (133.00) from holding China Sports Industry or give up 14.93% 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. China Sports Industry
Performance |
| Timeline |
| Heilongjiang Transport |
| China Sports Industry |
Heilongjiang Transport and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and China Sports
The main advantage of trading using opposite Heilongjiang Transport and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' 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 |
| China Sports vs. Sanbo Hospital Management | China Sports vs. Goodwill E Health | China Sports vs. Heren Health Co | China Sports vs. Sinofibers Technology Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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