Correlation Between Heilongjiang Publishing and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Publishing Media and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Heilongjiang Publishing and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Guangdong Jingyi.
Diversification Opportunities for Heilongjiang Publishing and Guangdong Jingyi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Guangdong Jingyi
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to generate 1.48 times more return on investment than Guangdong Jingyi. However, Heilongjiang Publishing is 1.48 times more volatile than Guangdong Jingyi Metal. It trades about 0.04 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.02 per unit of risk. If you would invest 1,014 in Heilongjiang Publishing Media on September 26, 2024 and sell it today you would earn a total of 536.00 from holding Heilongjiang Publishing Media or generate 52.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Heilongjiang Publishing |
| Guangdong Jingyi Metal |
Heilongjiang Publishing and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Guangdong Jingyi
The main advantage of trading using opposite Heilongjiang Publishing and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Heilongjiang Publishing vs. PetroChina Co Ltd | Heilongjiang Publishing vs. China Mobile Limited | Heilongjiang Publishing vs. CNOOC Limited | Heilongjiang Publishing vs. Ping An Insurance |
| Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets |