Correlation Between Hubeiyichang Transportation and Shenyang Blue
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubeiyichang Transportation Group and Shenyang Blue Silver, you can compare the effects of market volatilities on Hubeiyichang Transportation and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Shenyang Blue.
Diversification Opportunities for Hubeiyichang Transportation and Shenyang Blue
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubeiyichang and Shenyang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Shenyang Blue go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Shenyang Blue
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.67 times more return on investment than Shenyang Blue. However, Hubeiyichang Transportation Group is 1.49 times less risky than Shenyang Blue. It trades about 0.08 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.06 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Shenyang Blue Silver
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Shenyang Blue Silver |
Hubeiyichang Transportation and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Shenyang Blue
The main advantage of trading using opposite Hubeiyichang Transportation and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.The idea behind Hubeiyichang Transportation Group and Shenyang Blue Silver 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.
| Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. Kweichow Moutai Co | Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |