Correlation Between Lander Sports and Hubei Xingfa
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By analyzing existing cross correlation between Lander Sports Development and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Lander Sports and Hubei Xingfa 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 Lander Sports with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Hubei Xingfa.
Diversification Opportunities for Lander Sports and Hubei Xingfa
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lander and Hubei is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals and Lander Sports 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 Lander Sports Development are associated (or correlated) with Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Lander Sports i.e., Lander Sports and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Lander Sports and Hubei Xingfa
Assuming the 90 days trading horizon Lander Sports Development is expected to under-perform the Hubei Xingfa. In addition to that, Lander Sports is 1.17 times more volatile than Hubei Xingfa Chemicals. It trades about -0.13 of its total potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.0 per unit of volatility. If you would invest 2,290 in Hubei Xingfa Chemicals on August 28, 2024 and sell it today you would lose (17.00) from holding Hubei Xingfa Chemicals or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Lander Sports Development |
| Hubei Xingfa Chemicals |
Lander Sports and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Hubei Xingfa
The main advantage of trading using opposite Lander Sports and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Hubei Xingfa 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 Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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