Correlation Between Heilongjiang Transport and Sunny Loan
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By analyzing existing cross correlation between Heilongjiang Transport Development and Sunny Loan Top, you can compare the effects of market volatilities on Heilongjiang Transport and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Sunny Loan.
Diversification Opportunities for Heilongjiang Transport and Sunny Loan
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Sunny is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Sunny Loan go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Sunny Loan
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 1.83 times less return on investment than Sunny Loan. In addition to that, Heilongjiang Transport is 1.02 times more volatile than Sunny Loan Top. It trades about 0.03 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.05 per unit of volatility. If you would invest 647.00 in Sunny Loan Top on August 29, 2024 and sell it today you would earn a total of 358.00 from holding Sunny Loan Top or generate 55.33% 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. Sunny Loan Top
Performance |
| Timeline |
| Heilongjiang Transport |
| Sunny Loan Top |
Heilongjiang Transport and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Sunny Loan
The main advantage of trading using opposite Heilongjiang Transport and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. China Construction Bank | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Bank of China |
| Sunny Loan vs. Guangdong Qunxing Toys | Sunny Loan vs. Anji Foodstuff Co | Sunny Loan vs. Youyou Foods Co | Sunny Loan vs. Zhongyin Babi Food |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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