Correlation Between Heilongjiang Transport and China Zheshang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Transport Development and China Zheshang Bank, you can compare the effects of market volatilities on Heilongjiang Transport and China Zheshang 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 Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and China Zheshang.
Diversification Opportunities for Heilongjiang Transport and China Zheshang
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank 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 Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and China Zheshang go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and China Zheshang
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 2.33 times more return on investment than China Zheshang. However, Heilongjiang Transport is 2.33 times more volatile than China Zheshang Bank. It trades about 0.25 of its potential returns per unit of risk. China Zheshang Bank is currently generating about 0.17 per unit of risk. If you would invest 372.00 in Heilongjiang Transport Development on September 14, 2024 and sell it today you would earn a total of 52.00 from holding Heilongjiang Transport Development or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. China Zheshang Bank
Performance |
| Timeline |
| Heilongjiang Transport |
| China Zheshang Bank |
Heilongjiang Transport and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and China Zheshang
The main advantage of trading using opposite Heilongjiang Transport and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, China Zheshang 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 Zheshang will offset losses from the drop in China Zheshang's long position.| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
| China Zheshang vs. Heilongjiang Transport Development | China Zheshang vs. Sino Platinum Metals Co | China Zheshang vs. Shandong Huifa Foodstuff | China Zheshang vs. Tianshan Aluminum Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |