Correlation Between Hubeiyichang Transportation and Shenzhen Worldunion
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on Hubeiyichang Transportation and Shenzhen Worldunion 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 Hubeiyichang Transportation with a short position of Shenzhen Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Shenzhen Worldunion.
Diversification Opportunities for Hubeiyichang Transportation and Shenzhen Worldunion
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubeiyichang and Shenzhen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group are associated (or correlated) with Shenzhen Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Shenzhen Worldunion
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.34 times more return on investment than Shenzhen Worldunion. However, Hubeiyichang Transportation Group is 2.92 times less risky than Shenzhen Worldunion. It trades about 0.36 of its potential returns per unit of risk. Shenzhen Worldunion Properties is currently generating about 0.05 per unit of risk. If you would invest 517.00 in Hubeiyichang Transportation Group on September 15, 2024 and sell it today you would earn a total of 52.00 from holding Hubeiyichang Transportation Group or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Shenzhen Worldunion |
Hubeiyichang Transportation and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Shenzhen Worldunion
The main advantage of trading using opposite Hubeiyichang Transportation and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Shenzhen Worldunion 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 Shenzhen Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.The idea behind Hubeiyichang Transportation Group and Shenzhen Worldunion Properties pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shenzhen Worldunion vs. Hubeiyichang Transportation Group | Shenzhen Worldunion vs. Eastern Air Logistics | Shenzhen Worldunion vs. Ligao Foods CoLtd | Shenzhen Worldunion vs. Guangdong Wens Foodstuff |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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