Correlation Between Bank of Communications and Heilongjiang Transport
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By analyzing existing cross correlation between Bank of Communications and Heilongjiang Transport Development, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Heilongjiang Transport.
Diversification Opportunities for Bank of Communications and Heilongjiang Transport
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Heilongjiang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Bank of Communications and Heilongjiang Transport
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.83 times more return on investment than Heilongjiang Transport. However, Bank of Communications is 1.2 times less risky than Heilongjiang Transport. It trades about -0.14 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.14 per unit of risk. If you would invest 753.00 in Bank of Communications on November 3, 2024 and sell it today you would lose (28.00) from holding Bank of Communications or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Bank of Communications |
| Heilongjiang Transport |
Bank of Communications and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Heilongjiang Transport
The main advantage of trading using opposite Bank of Communications and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Hengkang Medical Group | Bank of Communications vs. Shenzhen Glory Medical | Bank of Communications vs. Sino Medical Sciences | Bank of Communications vs. Winner Medical Co |
| Heilongjiang Transport vs. Aluminum Corp of | Heilongjiang Transport vs. Rising Nonferrous Metals | Heilongjiang Transport vs. Anhui Transport Consulting | Heilongjiang Transport vs. Hefei Metalforming Mach |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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