Correlation Between Dongxing Sec and Heilongjiang Transport
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By analyzing existing cross correlation between Dongxing Sec Co and Heilongjiang Transport Development, you can compare the effects of market volatilities on Dongxing Sec and Heilongjiang Transport 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 Dongxing Sec with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Heilongjiang Transport.
Diversification Opportunities for Dongxing Sec and Heilongjiang Transport
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Heilongjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Dongxing Sec and Heilongjiang Transport
Assuming the 90 days trading horizon Dongxing Sec Co is expected to under-perform the Heilongjiang Transport. In addition to that, Dongxing Sec is 2.09 times more volatile than Heilongjiang Transport Development. It trades about -0.09 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.18 per unit of volatility. If you would invest 371.00 in Heilongjiang Transport Development on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Heilongjiang Transport Development or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Dongxing Sec |
| Heilongjiang Transport |
Dongxing Sec and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Heilongjiang Transport
The main advantage of trading using opposite Dongxing Sec and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Dongxing Sec vs. Renxin New Material | Dongxing Sec vs. Road Environment Technology | Dongxing Sec vs. Suzhou Xingye Material | Dongxing Sec vs. Chengdu Xinzhu RoadBridge |
| Heilongjiang Transport vs. China Life Insurance | Heilongjiang Transport vs. Cinda Securities Co | Heilongjiang Transport vs. Piotech Inc A | Heilongjiang Transport vs. Dongxing Sec Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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