Correlation Between Heilongjiang Publishing and Shanxi Xishan
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Shanxi Xishan Coal, you can compare the effects of market volatilities on Heilongjiang Publishing and Shanxi Xishan 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 Shanxi Xishan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Shanxi Xishan.
Diversification Opportunities for Heilongjiang Publishing and Shanxi Xishan
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heilongjiang and Shanxi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and Shanxi Xishan Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Xishan Coal 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 Shanxi Xishan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Xishan Coal has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and Shanxi Xishan go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Shanxi Xishan
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to generate 1.38 times more return on investment than Shanxi Xishan. However, Heilongjiang Publishing is 1.38 times more volatile than Shanxi Xishan Coal. It trades about 0.19 of its potential returns per unit of risk. Shanxi Xishan Coal is currently generating about 0.12 per unit of risk. If you would invest 1,220 in Heilongjiang Publishing Media on September 14, 2024 and sell it today you would earn a total of 507.00 from holding Heilongjiang Publishing Media or generate 41.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.28% |
Values | Daily Returns |
Heilongjiang Publishing Media vs. Shanxi Xishan Coal
Performance |
Timeline |
Heilongjiang Publishing |
Shanxi Xishan Coal |
Heilongjiang Publishing and Shanxi Xishan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Heilongjiang Publishing and Shanxi Xishan
The main advantage of trading using opposite Heilongjiang Publishing and Shanxi Xishan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, Shanxi Xishan 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 Shanxi Xishan will offset losses from the drop in Shanxi Xishan's long position.Heilongjiang Publishing vs. Ming Yang Smart | Heilongjiang Publishing vs. 159681 | Heilongjiang Publishing vs. 159005 | Heilongjiang Publishing vs. Loctek Ergonomic Technology |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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