Correlation Between Ping An and Hubei Forbon
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By analyzing existing cross correlation between Ping An Bank and Hubei Forbon Technology, you can compare the effects of market volatilities on Ping An and Hubei Forbon 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 Ping An with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Hubei Forbon.
Diversification Opportunities for Ping An and Hubei Forbon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Hubei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Bank and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology and Ping An 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 Ping An Bank are associated (or correlated) with Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Ping An i.e., Ping An and Hubei Forbon go up and down completely randomly.
Pair Corralation between Ping An and Hubei Forbon
Assuming the 90 days trading horizon Ping An is expected to generate 14.79 times less return on investment than Hubei Forbon. But when comparing it to its historical volatility, Ping An Bank is 1.91 times less risky than Hubei Forbon. It trades about 0.0 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 667.00 in Hubei Forbon Technology on August 27, 2024 and sell it today you would earn a total of 140.00 from holding Hubei Forbon Technology or generate 20.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Bank vs. Hubei Forbon Technology
Performance |
| Timeline |
| Ping An Bank |
| Hubei Forbon Technology |
Ping An and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Hubei Forbon
The main advantage of trading using opposite Ping An and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Ping An vs. Hubei Forbon Technology | Ping An vs. Hangzhou Gaoxin Rubber | Ping An vs. GRIPM Advanced Materials | Ping An vs. Sinofibers Technology Co |
| Hubei Forbon vs. Guangzhou Haozhi Industrial | Hubei Forbon vs. Huafa Industrial Co | Hubei Forbon vs. Guangdong Jingyi Metal | Hubei Forbon vs. Shandong Longquan Pipeline |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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