Correlation Between Chengdu Xingrong and Hubei Geoway
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Hubei Geoway Investment, you can compare the effects of market volatilities on Chengdu Xingrong and Hubei Geoway 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 Chengdu Xingrong with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Hubei Geoway.
Diversification Opportunities for Chengdu Xingrong and Hubei Geoway
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and Hubei is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Hubei Geoway go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Hubei Geoway
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Hubei Geoway. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.72 times less risky than Hubei Geoway. The stock trades about -0.1 of its potential returns per unit of risk. The Hubei Geoway Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Hubei Geoway Investment on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Hubei Geoway Investment or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Hubei Geoway Investment
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Hubei Geoway Investment |
Chengdu Xingrong and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Hubei Geoway
The main advantage of trading using opposite Chengdu Xingrong and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Hubei Geoway 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 Geoway will offset losses from the drop in Hubei Geoway's long position.| Chengdu Xingrong vs. Lutian Machinery Co | Chengdu Xingrong vs. China Longyuan Power | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Bank of China |
| Hubei Geoway vs. Qingdao Choho Industrial | Hubei Geoway vs. Jiangsu Jinling Sports | Hubei Geoway vs. Western Metal Materials | Hubei Geoway vs. China Sports Industry |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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