Correlation Between Heilongjiang Publishing and LianChuang Electronic
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By analyzing existing cross correlation between Heilongjiang Publishing Media and LianChuang Electronic Technology, you can compare the effects of market volatilities on Heilongjiang Publishing and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and LianChuang Electronic.
Diversification Opportunities for Heilongjiang Publishing and LianChuang Electronic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and LianChuang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and LianChuang Electronic
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to generate 0.86 times more return on investment than LianChuang Electronic. However, Heilongjiang Publishing Media is 1.16 times less risky than LianChuang Electronic. It trades about 0.15 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.07 per unit of risk. If you would invest 1,330 in Heilongjiang Publishing Media on November 4, 2024 and sell it today you would earn a total of 73.00 from holding Heilongjiang Publishing Media or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Heilongjiang Publishing |
| LianChuang Electronic |
Heilongjiang Publishing and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and LianChuang Electronic
The main advantage of trading using opposite Heilongjiang Publishing and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Heilongjiang Publishing vs. Tongyu Communication | Heilongjiang Publishing vs. Jiangsu Hoperun Software | Heilongjiang Publishing vs. Dr Peng Telecom | Heilongjiang Publishing vs. Soyea Technology Co |
| LianChuang Electronic vs. Porton Fine Chemicals | LianChuang Electronic vs. Zhongyin Babi Food | LianChuang Electronic vs. Anhui Deli Household | LianChuang Electronic vs. Beijing Kingsoft Office |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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