Correlation Between FSPG Hi-Tech and Hubeiyichang Transportation
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By analyzing existing cross correlation between FSPG Hi Tech Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on FSPG Hi-Tech 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 FSPG Hi-Tech with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi-Tech and Hubeiyichang Transportation.
Diversification Opportunities for FSPG Hi-Tech and Hubeiyichang Transportation
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and Hubeiyichang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and FSPG Hi-Tech 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 FSPG Hi Tech Co 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 FSPG Hi-Tech i.e., FSPG Hi-Tech and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between FSPG Hi-Tech and Hubeiyichang Transportation
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 1.46 times more return on investment than Hubeiyichang Transportation. However, FSPG Hi-Tech is 1.46 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 475.00 in FSPG Hi Tech Co on November 5, 2024 and sell it today you would earn a total of 83.00 from holding FSPG Hi Tech Co or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| FSPG Hi Tech |
| Hubeiyichang Transportation |
FSPG Hi-Tech and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi-Tech and Hubeiyichang Transportation
The main advantage of trading using opposite FSPG Hi-Tech and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi-Tech 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.| FSPG Hi-Tech vs. Harbin Air Conditioning | FSPG Hi-Tech vs. V V Food | FSPG Hi-Tech vs. Suzhou Weizhixiang Food | FSPG Hi-Tech vs. Gan Yuan Foods |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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