Correlation Between Jinzhou Port and Hubeiyichang Transportation
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By analyzing existing cross correlation between Jinzhou Port Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Jinzhou Port and Hubeiyichang Transportation 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 Jinzhou Port with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinzhou Port and Hubeiyichang Transportation.
Diversification Opportunities for Jinzhou Port and Hubeiyichang Transportation
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinzhou and Hubeiyichang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jinzhou Port Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Jinzhou Port 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 Jinzhou Port Co are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Jinzhou Port i.e., Jinzhou Port and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Jinzhou Port and Hubeiyichang Transportation
Assuming the 90 days trading horizon Jinzhou Port is expected to generate 1.21 times less return on investment than Hubeiyichang Transportation. In addition to that, Jinzhou Port is 1.7 times more volatile than Hubeiyichang Transportation Group. It trades about 0.04 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.08 per unit of volatility. If you would invest 476.00 in Hubeiyichang Transportation Group on September 13, 2024 and sell it today you would earn a total of 79.00 from holding Hubeiyichang Transportation Group or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinzhou Port Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Jinzhou Port |
| Hubeiyichang Transportation |
Jinzhou Port and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinzhou Port and Hubeiyichang Transportation
The main advantage of trading using opposite Jinzhou Port and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinzhou Port position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Jinzhou Port vs. North Huajin Chemical | Jinzhou Port vs. Liaoning Dingjide Petrochemical | Jinzhou Port vs. Guangzhou Jointas Chemical | Jinzhou Port vs. Youyou Foods Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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