Correlation Between Heilongjiang Transport and Advanced Micro
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By analyzing existing cross correlation between Heilongjiang Transport Development and Advanced Micro Fabrication, you can compare the effects of market volatilities on Heilongjiang Transport and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Advanced Micro.
Diversification Opportunities for Heilongjiang Transport and Advanced Micro
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Advanced is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Advanced Micro go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Advanced Micro
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.67 times more return on investment than Advanced Micro. However, Heilongjiang Transport Development is 1.5 times less risky than Advanced Micro. It trades about 0.14 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.03 per unit of risk. If you would invest 351.00 in Heilongjiang Transport Development on September 19, 2024 and sell it today you would earn a total of 49.00 from holding Heilongjiang Transport Development or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Heilongjiang Transport |
| Advanced Micro Fabri |
Heilongjiang Transport and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Advanced Micro
The main advantage of trading using opposite Heilongjiang Transport and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro'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 |
| Advanced Micro vs. Heilongjiang Publishing Media | Advanced Micro vs. Dazhong Transportation Group | Advanced Micro vs. Guangzhou Jinyi Media | Advanced Micro 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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