Correlation Between Liaoning Dingjide and HeBei Jinniu
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Liaoning Dingjide and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and HeBei Jinniu.
Diversification Opportunities for Liaoning Dingjide and HeBei Jinniu
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liaoning and HeBei is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Liaoning Dingjide i.e., Liaoning Dingjide and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and HeBei Jinniu
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to under-perform the HeBei Jinniu. In addition to that, Liaoning Dingjide is 1.15 times more volatile than HeBei Jinniu Chemical. It trades about -0.09 of its total potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.15 per unit of volatility. If you would invest 489.00 in HeBei Jinniu Chemical on October 28, 2024 and sell it today you would earn a total of 50.00 from holding HeBei Jinniu Chemical or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Liaoning Dingjide |
| HeBei Jinniu Chemical |
Liaoning Dingjide and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and HeBei Jinniu
The main advantage of trading using opposite Liaoning Dingjide and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Liaoning Dingjide vs. Guangdong Wens Foodstuff | Liaoning Dingjide vs. Xinjiang Tianrun Dairy | Liaoning Dingjide vs. Shanghai Ziyan Foods | Liaoning Dingjide vs. Namchow Food Group |
| HeBei Jinniu vs. HaiXin Foods Co | HeBei Jinniu vs. Gan Yuan Foods | HeBei Jinniu vs. Fujian Anjoy Foods | HeBei Jinniu vs. CICC Fund 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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