Correlation Between Western Metal and Hubei Geoway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Hubei Geoway Investment, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Hubei Geoway.
Diversification Opportunities for Western Metal and Hubei Geoway
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Hubei is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Hubei Geoway go up and down completely randomly.
Pair Corralation between Western Metal and Hubei Geoway
Assuming the 90 days trading horizon Western Metal is expected to generate 4.42 times less return on investment than Hubei Geoway. In addition to that, Western Metal is 1.03 times more volatile than Hubei Geoway Investment. It trades about 0.03 of its total potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.14 per unit of volatility. If you would invest 137.00 in Hubei Geoway Investment on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Hubei Geoway Investment or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Hubei Geoway Investment
Performance |
| Timeline |
| Western Metal Materials |
| Hubei Geoway Investment |
Western Metal and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Hubei Geoway
The main advantage of trading using opposite Western Metal and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Haima Automobile Group | Western Metal vs. FSPG Hi Tech Co | Western Metal vs. Tianjin Hi Tech Development | Western Metal vs. Peoples Insurance of |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Rongsheng Petrochemical Co | Hubei Geoway vs. Hoshine Silicon Ind |
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.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |