Correlation Between Heilongjiang Transport and Chahua Modern
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By analyzing existing cross correlation between Heilongjiang Transport Development and Chahua Modern Housewares, you can compare the effects of market volatilities on Heilongjiang Transport and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Chahua Modern.
Diversification Opportunities for Heilongjiang Transport and Chahua Modern
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heilongjiang and Chahua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Chahua Modern go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Chahua Modern
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 2.3 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Heilongjiang Transport Development is 2.58 times less risky than Chahua Modern. It trades about 0.18 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,889 in Chahua Modern Housewares on September 5, 2024 and sell it today you would earn a total of 276.00 from holding Chahua Modern Housewares or generate 14.61% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Heilongjiang Transport |
| Chahua Modern Housewares |
Heilongjiang Transport and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Chahua Modern
The main advantage of trading using opposite Heilongjiang Transport and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Quectel Wireless Solutions | Chahua Modern vs. Hubeiyichang Transportation Group | Chahua Modern vs. Hainan Airlines Co | Chahua Modern vs. Heilongjiang Transport Development |
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.
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