Correlation Between Hubeiyichang Transportation and Loongson Technology
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Loongson Technology Corp, you can compare the effects of market volatilities on Hubeiyichang Transportation and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Loongson Technology.
Diversification Opportunities for Hubeiyichang Transportation and Loongson Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubeiyichang and Loongson is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Loongson Technology go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Loongson Technology
Assuming the 90 days trading horizon Hubeiyichang Transportation is expected to generate 10.19 times less return on investment than Loongson Technology. But when comparing it to its historical volatility, Hubeiyichang Transportation Group is 2.21 times less risky than Loongson Technology. It trades about 0.01 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,956 in Loongson Technology Corp on September 5, 2024 and sell it today you would earn a total of 6,934 from holding Loongson Technology Corp or generate 77.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Loongson Technology Corp
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Loongson Technology Corp |
Hubeiyichang Transportation and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Loongson Technology
The main advantage of trading using opposite Hubeiyichang Transportation and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic Technology |
| Loongson Technology vs. Heilongjiang Publishing Media | Loongson Technology vs. Zhejiang Daily Media | Loongson Technology vs. Qtone Education Group | Loongson Technology vs. Thinkingdom Media Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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