Correlation Between Shandong Longquan and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Longquan Pipeline and Hubei Forbon Technology, you can compare the effects of market volatilities on Shandong Longquan and Hubei Forbon 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 Shandong Longquan with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Hubei Forbon.
Diversification Opportunities for Shandong Longquan and Hubei Forbon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Hubei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology and Shandong Longquan 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 Shandong Longquan Pipeline are associated (or correlated) with Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Shandong Longquan i.e., Shandong Longquan and Hubei Forbon go up and down completely randomly.
Pair Corralation between Shandong Longquan and Hubei Forbon
Assuming the 90 days trading horizon Shandong Longquan is expected to generate 1.91 times less return on investment than Hubei Forbon. But when comparing it to its historical volatility, Shandong Longquan Pipeline is 1.54 times less risky than Hubei Forbon. It trades about 0.13 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Hubei Forbon Technology on August 30, 2024 and sell it today you would earn a total of 110.00 from holding Hubei Forbon Technology or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Hubei Forbon Technology
Performance |
| Timeline |
| Shandong Longquan |
| Hubei Forbon Technology |
Shandong Longquan and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Hubei Forbon
The main advantage of trading using opposite Shandong Longquan and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan position performs unexpectedly, Hubei Forbon 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 Forbon will offset losses from the drop in Hubei Forbon's long position.| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Shandong Gold Mining |
| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Shandong Gold Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |