Correlation Between Heilongjiang Publishing and Cinda Securities
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Cinda Securities Co, you can compare the effects of market volatilities on Heilongjiang Publishing and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Cinda Securities.
Diversification Opportunities for Heilongjiang Publishing and Cinda Securities
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Heilongjiang and Cinda is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Cinda Securities go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Cinda Securities
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Cinda Securities. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Publishing Media is 1.91 times less risky than Cinda Securities. The stock trades about -0.31 of its potential returns per unit of risk. The Cinda Securities Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,406 in Cinda Securities Co on December 10, 2024 and sell it today you would earn a total of 207.00 from holding Cinda Securities Co or generate 14.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Heilongjiang Publishing Media vs. Cinda Securities Co
Performance |
Timeline |
Heilongjiang Publishing |
Cinda Securities |
Heilongjiang Publishing and Cinda Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Heilongjiang Publishing and Cinda Securities
The main advantage of trading using opposite Heilongjiang Publishing and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.The idea behind Heilongjiang Publishing Media and Cinda Securities Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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