Correlation Between Heilongjiang Transport and Xinjiang Tianrun
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By analyzing existing cross correlation between Heilongjiang Transport Development and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Heilongjiang Transport and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Xinjiang Tianrun.
Diversification Opportunities for Heilongjiang Transport and Xinjiang Tianrun
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heilongjiang and Xinjiang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Xinjiang Tianrun
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 1.52 times less return on investment than Xinjiang Tianrun. But when comparing it to its historical volatility, Heilongjiang Transport Development is 1.31 times less risky than Xinjiang Tianrun. It trades about 0.18 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 849.00 in Xinjiang Tianrun Dairy on August 24, 2024 and sell it today you would earn a total of 93.00 from holding Xinjiang Tianrun Dairy or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Heilongjiang Transport |
| Xinjiang Tianrun Dairy |
Heilongjiang Transport and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Xinjiang Tianrun
The main advantage of trading using opposite Heilongjiang Transport and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Heilongjiang Transport vs. Sanbo Hospital Management | Heilongjiang Transport vs. Harbin Hatou Investment | Heilongjiang Transport vs. Cicc Fund Management | Heilongjiang Transport vs. Huaxia Fund Management |
| Xinjiang Tianrun vs. Air China Ltd | Xinjiang Tianrun vs. Eastern Air Logistics | Xinjiang Tianrun vs. Xiamen Bank Co | Xinjiang Tianrun vs. Guangzhou Shangpin Home |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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