Correlation Between Heilongjiang Publishing and 5I5j Holding
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By analyzing existing cross correlation between Heilongjiang Publishing Media and 5I5j Holding Group, you can compare the effects of market volatilities on Heilongjiang Publishing and 5I5j Holding 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and 5I5j Holding.
Diversification Opportunities for Heilongjiang Publishing and 5I5j Holding
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heilongjiang and 5I5j is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and 5I5j Holding go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and 5I5j Holding
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the 5I5j Holding. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Publishing Media is 1.19 times less risky than 5I5j Holding. The stock trades about -0.04 of its potential returns per unit of risk. The 5I5j Holding Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 206.00 in 5I5j Holding Group on October 14, 2024 and sell it today you would earn a total of 78.00 from holding 5I5j Holding Group or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. 5I5j Holding Group
Performance |
| Timeline |
| Heilongjiang Publishing |
| 5I5j Holding Group |
Heilongjiang Publishing and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and 5I5j Holding
The main advantage of trading using opposite Heilongjiang Publishing and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.The idea behind Heilongjiang Publishing Media and 5I5j Holding Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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