Correlation Between Longjian Road and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longjian Road Bridge and Heilongjiang Transport Development, you can compare the effects of market volatilities on Longjian Road 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 Longjian Road with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Heilongjiang Transport.
Diversification Opportunities for Longjian Road and Heilongjiang Transport
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longjian and Heilongjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Longjian Road 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 Longjian Road Bridge 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 Longjian Road i.e., Longjian Road and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Longjian Road and Heilongjiang Transport
Assuming the 90 days trading horizon Longjian Road is expected to generate 3.71 times less return on investment than Heilongjiang Transport. But when comparing it to its historical volatility, Longjian Road Bridge is 1.03 times less risky than Heilongjiang Transport. It trades about 0.01 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 308.00 in Heilongjiang Transport Development on October 11, 2024 and sell it today you would earn a total of 32.00 from holding Heilongjiang Transport Development or generate 10.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Longjian Road Bridge vs. Heilongjiang Transport Develop
Performance |
Timeline |
Longjian Road Bridge |
Heilongjiang Transport |
Longjian Road and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Longjian Road and Heilongjiang Transport
The main advantage of trading using opposite Longjian Road and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road 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.Longjian Road vs. Jinlong Machinery Electronic | Longjian Road vs. Lutian Machinery Co | Longjian Road vs. Dazhong Transportation Group | Longjian Road vs. Hongrun Construction Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |