Correlation Between Shenzhen Transsion and Heilongjiang Transport
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Heilongjiang Transport Development, you can compare the effects of market volatilities on Shenzhen Transsion and Heilongjiang Transport 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 Shenzhen Transsion with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Heilongjiang Transport.
Diversification Opportunities for Shenzhen Transsion and Heilongjiang Transport
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Heilongjiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Shenzhen Transsion 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 Shenzhen Transsion Holdings are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Heilongjiang Transport
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the Heilongjiang Transport. In addition to that, Shenzhen Transsion is 1.43 times more volatile than Heilongjiang Transport Development. It trades about -0.03 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.17 per unit of volatility. If you would invest 350.00 in Heilongjiang Transport Development on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Heilongjiang Transport Development or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Shenzhen Transsion |
| Heilongjiang Transport |
Shenzhen Transsion and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Heilongjiang Transport
The main advantage of trading using opposite Shenzhen Transsion and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Shenzhen Transsion vs. Anhui Transport Consulting | Shenzhen Transsion vs. China Sports Industry | Shenzhen Transsion vs. Fiberhome Telecommunication Technologies | Shenzhen Transsion vs. Tongyu Communication |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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