Correlation Between Heilongjiang Transport and China Aluminum
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By analyzing existing cross correlation between Heilongjiang Transport Development and China Aluminum International, you can compare the effects of market volatilities on Heilongjiang Transport and China Aluminum 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 Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and China Aluminum.
Diversification Opportunities for Heilongjiang Transport and China Aluminum
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heilongjiang and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and China Aluminum go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and China Aluminum
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.19 times more return on investment than China Aluminum. However, Heilongjiang Transport is 1.19 times more volatile than China Aluminum International. It trades about 0.03 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.0 per unit of risk. If you would invest 305.00 in Heilongjiang Transport Development on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Heilongjiang Transport Development or generate 25.25% 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. China Aluminum International
Performance |
| Timeline |
| Heilongjiang Transport |
| China Aluminum Inter |
Heilongjiang Transport and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and China Aluminum
The main advantage of trading using opposite Heilongjiang Transport and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, China Aluminum 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 Aluminum will offset losses from the drop in China Aluminum'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 |
| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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