Correlation Between Heilongjiang Transport and Long Yuan
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By analyzing existing cross correlation between Heilongjiang Transport Development and Long Yuan Construction, you can compare the effects of market volatilities on Heilongjiang Transport and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Long Yuan.
Diversification Opportunities for Heilongjiang Transport and Long Yuan
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Long is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Long Yuan go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Long Yuan
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to under-perform the Long Yuan. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Transport Development is 1.14 times less risky than Long Yuan. The stock trades about -0.12 of its potential returns per unit of risk. The Long Yuan Construction is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 383.00 in Long Yuan Construction on October 30, 2024 and sell it today you would lose (17.00) from holding Long Yuan Construction or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Long Yuan Construction
Performance |
| Timeline |
| Heilongjiang Transport |
| Long Yuan Construction |
Heilongjiang Transport and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Long Yuan
The main advantage of trading using opposite Heilongjiang Transport and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Guilin Seamild Foods | Heilongjiang Transport vs. Jiahe Foods Industry | Heilongjiang Transport vs. Anji Foodstuff Co |
| Long Yuan vs. COL Digital Publishing | Long Yuan vs. Shenzhen Zhongzhuang Construction | Long Yuan vs. XCMG Construction Machinery | Long Yuan vs. Zhangjiagang Freetrade Science |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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