Correlation Between Heilongjiang Publishing and Shanghai Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Publishing Media and Shanghai Construction Group, you can compare the effects of market volatilities on Heilongjiang Publishing and Shanghai Construction 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 Shanghai Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Shanghai Construction.
Diversification Opportunities for Heilongjiang Publishing and Shanghai Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Shanghai Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Construction 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 Shanghai Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Construction has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Shanghai Construction go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Shanghai Construction
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Shanghai Construction. In addition to that, Heilongjiang Publishing is 1.24 times more volatile than Shanghai Construction Group. It trades about -0.25 of its total potential returns per unit of risk. Shanghai Construction Group is currently generating about -0.1 per unit of volatility. If you would invest 256.00 in Shanghai Construction Group on December 9, 2024 and sell it today you would lose (8.00) from holding Shanghai Construction Group or give up 3.12% 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. Shanghai Construction Group
Performance |
| Timeline |
| Heilongjiang Publishing |
| Shanghai Construction |
Heilongjiang Publishing and Shanghai Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Shanghai Construction
The main advantage of trading using opposite Heilongjiang Publishing and Shanghai Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Shanghai Construction 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 Shanghai Construction will offset losses from the drop in Shanghai Construction's long position.| Heilongjiang Publishing vs. Western Mining Co | Heilongjiang Publishing vs. Huaibei Mining Holdings | Heilongjiang Publishing vs. Chenzhou Jingui Silver | Heilongjiang Publishing vs. JCHX Mining Management |
| Shanghai Construction vs. Xinxiang Chemical Fiber | Shanghai Construction vs. Panda Financial Holding | Shanghai Construction vs. Hua Xia Bank | Shanghai Construction vs. China Everbright Bank |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |