Correlation Between Xiamen Jihong and Hubei Forbon
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By analyzing existing cross correlation between Xiamen Jihong Package and Hubei Forbon Technology, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Hubei Forbon.
Diversification Opportunities for Xiamen Jihong and Hubei Forbon
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Hubei is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package 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 Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Hubei Forbon go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Hubei Forbon
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Hubei Forbon. In addition to that, Xiamen Jihong is 1.2 times more volatile than Hubei Forbon Technology. It trades about -0.15 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about -0.06 per unit of volatility. If you would invest 903.00 in Hubei Forbon Technology on October 30, 2024 and sell it today you would lose (73.00) from holding Hubei Forbon Technology or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Hubei Forbon Technology
Performance |
| Timeline |
| Xiamen Jihong Package |
| Hubei Forbon Technology |
Xiamen Jihong and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Hubei Forbon
The main advantage of trading using opposite Xiamen Jihong and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Unisplendour Corp | Xiamen Jihong vs. Zhejiang JIULI Hi tech | Xiamen Jihong vs. Kuang Chi Technologies |
| Hubei Forbon vs. Maoming Petro Chemical Shihua | Hubei Forbon vs. Guocheng Mining Co | Hubei Forbon vs. Ningbo Jintian Copper | Hubei Forbon vs. Rising Nonferrous Metals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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