Correlation Between China Securities and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Hubei Xingfa.
Diversification Opportunities for China Securities and Hubei Xingfa
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Hubei is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Hubei Xingfa go up and down completely randomly.
Pair Corralation between China Securities and Hubei Xingfa
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Hubei Xingfa. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.01 times less risky than Hubei Xingfa. The index trades about -0.11 of its potential returns per unit of risk. The Hubei Xingfa Chemicals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,290 in Hubei Xingfa Chemicals on August 29, 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 | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
China Securities and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Hubei Xingfa Chemicals
Pair trading matchups for Hubei Xingfa
Pair Trading with China Securities and Hubei Xingfa
The main advantage of trading using opposite China Securities and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |