Correlation Between Liaoning Dingjide and Hunan Investment
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Hunan Investment Group, you can compare the effects of market volatilities on Liaoning Dingjide and Hunan Investment 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 Liaoning Dingjide with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Hunan Investment.
Diversification Opportunities for Liaoning Dingjide and Hunan Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liaoning and Hunan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Liaoning Dingjide 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 Liaoning Dingjide Petrochemical are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Liaoning Dingjide i.e., Liaoning Dingjide and Hunan Investment go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Hunan Investment
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to under-perform the Hunan Investment. In addition to that, Liaoning Dingjide is 1.19 times more volatile than Hunan Investment Group. It trades about -0.03 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.0 per unit of volatility. If you would invest 550.00 in Hunan Investment Group on October 16, 2024 and sell it today you would lose (42.00) from holding Hunan Investment Group or give up 7.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Hunan Investment Group
Performance |
| Timeline |
| Liaoning Dingjide |
| Hunan Investment |
Liaoning Dingjide and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and Hunan Investment
The main advantage of trading using opposite Liaoning Dingjide and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Liaoning Dingjide vs. Hunan Investment Group | Liaoning Dingjide vs. Zoje Resources Investment | Liaoning Dingjide vs. Jinhui Mining Co | Liaoning Dingjide vs. Zhejiang Kingland Pipeline |
| Hunan Investment vs. Liaoning Dingjide Petrochemical | Hunan Investment vs. Dosilicon Co | Hunan Investment vs. Postal Savings Bank | Hunan Investment vs. China Asset Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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