Correlation Between Changchun and Hubei Geoway
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By analyzing existing cross correlation between Changchun UP Optotech and Hubei Geoway Investment, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Hubei Geoway.
Diversification Opportunities for Changchun and Hubei Geoway
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changchun and Hubei is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Hubei Geoway go up and down completely randomly.
Pair Corralation between Changchun and Hubei Geoway
Assuming the 90 days trading horizon Changchun is expected to generate 1.13 times less return on investment than Hubei Geoway. In addition to that, Changchun is 1.07 times more volatile than Hubei Geoway Investment. It trades about 0.06 of its total potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.07 per unit of volatility. If you would invest 131.00 in Hubei Geoway Investment on October 14, 2024 and sell it today you would earn a total of 16.00 from holding Hubei Geoway Investment or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Hubei Geoway Investment
Performance |
| Timeline |
| Changchun UP Optotech |
| Hubei Geoway Investment |
Changchun and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Hubei Geoway
The main advantage of trading using opposite Changchun and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Shenyang Blue Silver | Changchun vs. Gem Year Industrial Co | Changchun vs. Qingdao Choho Industrial | Changchun vs. Tonghua Grape Wine |
| Hubei Geoway vs. Muyuan Foodstuff Co | Hubei Geoway vs. Beijing Sanyuan Foods | Hubei Geoway vs. Youyou Foods Co | Hubei Geoway vs. Bohai Leasing Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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