Correlation Between Hubeiyichang Transportation and Xinjiang Beixin
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Hubeiyichang Transportation and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Xinjiang Beixin.
Diversification Opportunities for Hubeiyichang Transportation and Xinjiang Beixin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubeiyichang and Xinjiang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Xinjiang Beixin
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.72 times more return on investment than Xinjiang Beixin. However, Hubeiyichang Transportation Group is 1.39 times less risky than Xinjiang Beixin. It trades about 0.08 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.11 per unit of risk. If you would invest 499.00 in Hubeiyichang Transportation Group on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Hubeiyichang Transportation Group or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Xinjiang Beixin Road |
Hubeiyichang Transportation and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Xinjiang Beixin
The main advantage of trading using opposite Hubeiyichang Transportation and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Hubeiyichang Transportation vs. Hua Xia Bank | Hubeiyichang Transportation vs. Agricultural Bank of | Hubeiyichang Transportation vs. Ping An Insurance | Hubeiyichang Transportation vs. Dongfeng Automobile Co |
| Xinjiang Beixin vs. PetroChina Co Ltd | Xinjiang Beixin vs. China Mobile Limited | Xinjiang Beixin vs. CNOOC Limited | Xinjiang Beixin vs. Ping An Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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