Correlation Between Heilongjiang Transport and Ningbo Jintian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and Ningbo Jintian Copper, you can compare the effects of market volatilities on Heilongjiang Transport and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Ningbo Jintian.
Diversification Opportunities for Heilongjiang Transport and Ningbo Jintian
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Ningbo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Ningbo Jintian
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.63 times more return on investment than Ningbo Jintian. However, Heilongjiang Transport is 1.63 times more volatile than Ningbo Jintian Copper. It trades about 0.02 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.0 per unit of risk. If you would invest 309.00 in Heilongjiang Transport Development on November 7, 2024 and sell it today you would earn a total of 31.00 from holding Heilongjiang Transport Development or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Heilongjiang Transport |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ningbo Jintian Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Heilongjiang Transport and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Ningbo Jintian
The main advantage of trading using opposite Heilongjiang Transport and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.The idea behind Heilongjiang Transport Development and Ningbo Jintian Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |