Correlation Between Heilongjiang Publishing and Shenzhen Shenbao
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Heilongjiang Publishing and Shenzhen Shenbao 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 Heilongjiang Publishing with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Shenzhen Shenbao.
Diversification Opportunities for Heilongjiang Publishing and Shenzhen Shenbao
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Heilongjiang Publishing 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 Heilongjiang Publishing Media are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Shenzhen Shenbao
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Shenzhen Shenbao. In addition to that, Heilongjiang Publishing is 2.02 times more volatile than Shenzhen Shenbao Industrial. It trades about -0.04 of its total potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.01 per unit of volatility. If you would invest 716.00 in Shenzhen Shenbao Industrial on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Shenzhen Shenbao Industrial or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Heilongjiang Publishing |
| Shenzhen Shenbao Ind |
Heilongjiang Publishing and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Shenzhen Shenbao
The main advantage of trading using opposite Heilongjiang Publishing and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Heilongjiang Publishing vs. Ming Yang Smart | Heilongjiang Publishing vs. 159681 | Heilongjiang Publishing vs. 159005 | Heilongjiang Publishing vs. Loctek Ergonomic Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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