Correlation Between Heilongjiang Publishing and Chengdu Xinzhu
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Heilongjiang Publishing and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Chengdu Xinzhu.
Diversification Opportunities for Heilongjiang Publishing and Chengdu Xinzhu
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Heilongjiang and Chengdu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Chengdu Xinzhu
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Chengdu Xinzhu. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Publishing Media is 1.73 times less risky than Chengdu Xinzhu. The stock trades about -0.13 of its potential returns per unit of risk. The Chengdu Xinzhu RoadBridge is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Chengdu Xinzhu RoadBridge on October 28, 2024 and sell it today you would earn a total of 15.00 from holding Chengdu Xinzhu RoadBridge or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Heilongjiang Publishing |
| Chengdu Xinzhu RoadBridge |
Heilongjiang Publishing and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Chengdu Xinzhu
The main advantage of trading using opposite Heilongjiang Publishing and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Heilongjiang Publishing vs. Bus Online Co | Heilongjiang Publishing vs. Holitech Technology Co | Heilongjiang Publishing vs. Gome Telecom Equipment | Heilongjiang Publishing vs. Cultural Investment Holdings |
| Chengdu Xinzhu vs. Hefei Metalforming Mach | Chengdu Xinzhu vs. Harvest Fund Management | Chengdu Xinzhu vs. Shanghai CEO Environmental | Chengdu Xinzhu vs. Zoy Home Furnishing |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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