Correlation Between Heilongjiang Transport and Bank of Jiangsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and Bank of Jiangsu, you can compare the effects of market volatilities on Heilongjiang Transport and Bank of Jiangsu 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 Bank of Jiangsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Bank of Jiangsu.
Diversification Opportunities for Heilongjiang Transport and Bank of Jiangsu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Bank is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu 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 Bank of Jiangsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Jiangsu has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Bank of Jiangsu go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Bank of Jiangsu
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.35 times more return on investment than Bank of Jiangsu. However, Heilongjiang Transport is 1.35 times more volatile than Bank of Jiangsu. It trades about 0.18 of its potential returns per unit of risk. Bank of Jiangsu is currently generating about -0.1 per unit of risk. If you would invest 371.00 in Heilongjiang Transport Development on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Heilongjiang Transport Development or generate 6.74% 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. Bank of Jiangsu
Performance |
| Timeline |
| Heilongjiang Transport |
| Bank of Jiangsu |
Heilongjiang Transport and Bank of Jiangsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Bank of Jiangsu
The main advantage of trading using opposite Heilongjiang Transport and Bank of Jiangsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Bank of Jiangsu 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 Bank of Jiangsu will offset losses from the drop in Bank of Jiangsu's long position.| Heilongjiang Transport vs. China Life Insurance | Heilongjiang Transport vs. Cinda Securities Co | Heilongjiang Transport vs. Piotech Inc A | Heilongjiang Transport vs. Dongxing Sec Co |
| Bank of Jiangsu vs. Heilongjiang Transport Development | Bank of Jiangsu vs. Shanghai Yaoji Playing | Bank of Jiangsu vs. Dareway Software Co | Bank of Jiangsu vs. Sportsoul 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |