Correlation Between Heilongjiang Transport and Bank of China
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By analyzing existing cross correlation between Heilongjiang Transport Development and Bank of China, you can compare the effects of market volatilities on Heilongjiang Transport and Bank of China 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 China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Bank of China.
Diversification Opportunities for Heilongjiang Transport and Bank of China
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Heilongjiang and Bank is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 China. 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 China has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Bank of China go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Bank of China
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 2.48 times more return on investment than Bank of China. However, Heilongjiang Transport is 2.48 times more volatile than Bank of China. It trades about 0.03 of its potential returns per unit of risk. Bank of China is currently generating about 0.04 per unit of risk. If you would invest 324.00 in Heilongjiang Transport Development on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Heilongjiang Transport Development or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Bank of China
Performance |
| Timeline |
| Heilongjiang Transport |
| Bank of China |
Heilongjiang Transport and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Bank of China
The main advantage of trading using opposite Heilongjiang Transport and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Bank of China 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 China will offset losses from the drop in Bank of China's long position.| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology Co |
| Bank of China vs. Tianjin Hi Tech Development | Bank of China vs. Dazhong Transportation Group | Bank of China vs. Hubeiyichang Transportation Group | Bank of China vs. Guangdong Shenglu Telecommunication |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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