Correlation Between Shandong Sino and Heilongjiang Transport
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By analyzing existing cross correlation between Shandong Sino Agri United and Heilongjiang Transport Development, you can compare the effects of market volatilities on Shandong Sino 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 Shandong Sino with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sino and Heilongjiang Transport.
Diversification Opportunities for Shandong Sino and Heilongjiang Transport
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Heilongjiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sino Agri United and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Shandong Sino 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 Shandong Sino Agri United 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 Shandong Sino i.e., Shandong Sino and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Shandong Sino and Heilongjiang Transport
Assuming the 90 days trading horizon Shandong Sino Agri United is expected to under-perform the Heilongjiang Transport. In addition to that, Shandong Sino is 1.0 times more volatile than Heilongjiang Transport Development. It trades about -0.02 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.01 per unit of volatility. If you would invest 339.00 in Heilongjiang Transport Development on November 30, 2024 and sell it today you would lose (10.00) from holding Heilongjiang Transport Development or give up 2.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Sino Agri United vs. Heilongjiang Transport Develop
Performance |
Timeline |
Shandong Sino Agri |
Heilongjiang Transport |
Shandong Sino and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Sino and Heilongjiang Transport
The main advantage of trading using opposite Shandong Sino and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sino 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.Shandong Sino vs. Zhengzhou Coal Mining | ||
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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