Correlation Between Heilongjiang Publishing and Jiangxi Hengda
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Heilongjiang Publishing and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Jiangxi Hengda.
Diversification Opportunities for Heilongjiang Publishing and Jiangxi Hengda
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Jiangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Jiangxi Hengda
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Jiangxi Hengda. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Publishing Media is 1.47 times less risky than Jiangxi Hengda. The stock trades about -0.42 of its potential returns per unit of risk. The Jiangxi Hengda Hi Tech is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 643.00 in Jiangxi Hengda Hi Tech on October 17, 2024 and sell it today you would lose (140.00) from holding Jiangxi Hengda Hi Tech or give up 21.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Heilongjiang Publishing |
| Jiangxi Hengda Hi |
Heilongjiang Publishing and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Jiangxi Hengda
The main advantage of trading using opposite Heilongjiang Publishing and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Heilongjiang Publishing vs. Jonjee Hi tech Industrial | Heilongjiang Publishing vs. Zhengzhou Coal Mining | Heilongjiang Publishing vs. Great Sun Foods Co | Heilongjiang Publishing vs. Guangdong Jingyi Metal |
| Jiangxi Hengda vs. Shanghai Action Education | Jiangxi Hengda vs. Gansu Jiu Steel | Jiangxi Hengda vs. Heilongjiang Publishing Media | Jiangxi Hengda vs. Eit Environmental Development |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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