Correlation Between Xiandai Investment and Hubei Geoway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiandai Investment Co and Hubei Geoway Investment, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Hubei Geoway.
Diversification Opportunities for Xiandai Investment and Hubei Geoway
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Hubei is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co 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 Xiandai 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Hubei Geoway go up and down completely randomly.
Pair Corralation between Xiandai Investment and Hubei Geoway
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.35 times more return on investment than Hubei Geoway. However, Xiandai Investment Co is 2.89 times less risky than Hubei Geoway. It trades about -0.19 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.17 per unit of risk. If you would invest 424.00 in Xiandai Investment Co on December 11, 2024 and sell it today you would lose (14.00) from holding Xiandai Investment Co or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Hubei Geoway Investment
Performance |
| Timeline |
| Xiandai Investment |
| Hubei Geoway Investment |
Xiandai Investment and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Hubei Geoway
The main advantage of trading using opposite Xiandai Investment and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Techshine Electronics Co | Xiandai Investment vs. Elite Color Environmental | Xiandai Investment vs. Eit Environmental Development | Xiandai Investment vs. Aurora Optoelectronics Co |
| Hubei Geoway vs. Tieling Newcity Investment | Hubei Geoway vs. Huawen Media Investment | Hubei Geoway vs. Guangdong Advertising Co | Hubei Geoway vs. Jiangsu Yueda Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |