Correlation Between Liaoning Dingjide and Hangzhou Minsheng
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Liaoning Dingjide and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Hangzhou Minsheng.
Diversification Opportunities for Liaoning Dingjide and Hangzhou Minsheng
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liaoning and Hangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Liaoning Dingjide i.e., Liaoning Dingjide and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Hangzhou Minsheng
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to generate 0.69 times more return on investment than Hangzhou Minsheng. However, Liaoning Dingjide Petrochemical is 1.45 times less risky than Hangzhou Minsheng. It trades about 0.0 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.06 per unit of risk. If you would invest 3,698 in Liaoning Dingjide Petrochemical on September 12, 2024 and sell it today you would lose (198.00) from holding Liaoning Dingjide Petrochemical or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.52% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Liaoning Dingjide |
| Hangzhou Minsheng |
Liaoning Dingjide and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and Hangzhou Minsheng
The main advantage of trading using opposite Liaoning Dingjide and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Liaoning Dingjide vs. Zijin Mining Group | Liaoning Dingjide vs. Wanhua Chemical Group | Liaoning Dingjide vs. Baoshan Iron Steel | Liaoning Dingjide vs. Rongsheng Petrochemical Co |
| Hangzhou Minsheng vs. Liaoning Dingjide Petrochemical | Hangzhou Minsheng vs. Yangmei Chemical Co | Hangzhou Minsheng vs. Caihong Display Devices | Hangzhou Minsheng vs. Ningbo Bohui Chemical |
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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