Correlation Between Zhuhai Port and Hubei Dinglong
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By analyzing existing cross correlation between Zhuhai Port Co and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Zhuhai Port and Hubei Dinglong 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 Zhuhai Port with a short position of Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Port and Hubei Dinglong.
Diversification Opportunities for Zhuhai Port and Hubei Dinglong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhuhai and Hubei is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Port Co and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical and Zhuhai Port 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 Zhuhai Port Co are associated (or correlated) with Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Zhuhai Port i.e., Zhuhai Port and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Zhuhai Port and Hubei Dinglong
Assuming the 90 days trading horizon Zhuhai Port Co is expected to under-perform the Hubei Dinglong. But the stock apears to be less risky and, when comparing its historical volatility, Zhuhai Port Co is 1.67 times less risky than Hubei Dinglong. The stock trades about -0.01 of its potential returns per unit of risk. The Hubei Dinglong Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,336 in Hubei Dinglong Chemical on August 28, 2024 and sell it today you would earn a total of 375.00 from holding Hubei Dinglong Chemical or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuhai Port Co vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Zhuhai Port |
| Hubei Dinglong Chemical |
Zhuhai Port and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuhai Port and Hubei Dinglong
The main advantage of trading using opposite Zhuhai Port and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Port position performs unexpectedly, Hubei Dinglong 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 Dinglong will offset losses from the drop in Hubei Dinglong's long position.| Zhuhai Port vs. Qinghaihuading Industrial Co | Zhuhai Port vs. Jonjee Hi tech Industrial | Zhuhai Port vs. Hainan Mining Co | Zhuhai Port vs. Blue Sail Medical |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong vs. Rongsheng Petrochemical Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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