Correlation Between Hunan Investment and Hubeiyichang Transportation
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By analyzing existing cross correlation between Hunan Investment Group and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Hunan Investment and Hubeiyichang Transportation 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 Hunan Investment with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Hubeiyichang Transportation.
Diversification Opportunities for Hunan Investment and Hubeiyichang Transportation
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Hubeiyichang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Hunan Investment i.e., Hunan Investment and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Hunan Investment and Hubeiyichang Transportation
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.43 times more return on investment than Hubeiyichang Transportation. However, Hunan Investment is 1.43 times more volatile than Hubeiyichang Transportation Group. It trades about 0.03 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 506.00 in Hunan Investment Group on September 12, 2024 and sell it today you would earn a total of 92.00 from holding Hunan Investment Group or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Hunan Investment |
| Hubeiyichang Transportation |
Hunan Investment and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Hubeiyichang Transportation
The main advantage of trading using opposite Hunan Investment and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Hunan Investment vs. Agricultural Bank of | Hunan Investment vs. Industrial and Commercial | Hunan Investment vs. Bank of China | Hunan Investment vs. PetroChina Co Ltd |
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 CEOs Directory module to screen CEOs from public companies around the world.
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