Correlation Between Industrial and Heilongjiang Agriculture
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By analyzing existing cross correlation between Industrial and Commercial and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on Industrial and Heilongjiang Agriculture 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 Industrial with a short position of Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Heilongjiang Agriculture.
Diversification Opportunities for Industrial and Heilongjiang Agriculture
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Heilongjiang is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture and Industrial 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 Industrial and Commercial are associated (or correlated) with Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of Industrial i.e., Industrial and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between Industrial and Heilongjiang Agriculture
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.9 times more return on investment than Heilongjiang Agriculture. However, Industrial and Commercial is 1.12 times less risky than Heilongjiang Agriculture. It trades about 0.1 of its potential returns per unit of risk. Heilongjiang Agriculture Co is currently generating about 0.01 per unit of risk. If you would invest 403.00 in Industrial and Commercial on November 5, 2024 and sell it today you would earn a total of 279.00 from holding Industrial and Commercial or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| Industrial and Commercial |
| Heilongjiang Agriculture |
Industrial and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Heilongjiang Agriculture
The main advantage of trading using opposite Industrial and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Heilongjiang Agriculture 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 Agriculture will offset losses from the drop in Heilongjiang Agriculture's long position.| Industrial vs. China World Trade | Industrial vs. Yili Chuanning Biotechnology | Industrial vs. Wuhan Hvsen Biotechnology | Industrial vs. Anhui Huilong Agricultural |
| Heilongjiang Agriculture vs. Winner Medical Co | Heilongjiang Agriculture vs. Qingdao Haier Biomedical | Heilongjiang Agriculture vs. Xiangyu Medical Co | Heilongjiang Agriculture vs. Hengkang Medical Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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