Correlation Between Hubei Yingtong and Shenzhen Centralcon
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Hubei Yingtong and Shenzhen Centralcon 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 Hubei Yingtong with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Shenzhen Centralcon.
Diversification Opportunities for Hubei Yingtong and Shenzhen Centralcon
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Hubei Yingtong 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 Hubei Yingtong Telecommunication are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Shenzhen Centralcon
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 1.29 times more return on investment than Shenzhen Centralcon. However, Hubei Yingtong is 1.29 times more volatile than Shenzhen Centralcon Investment. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.03 per unit of risk. If you would invest 1,340 in Hubei Yingtong Telecommunication on September 30, 2024 and sell it today you would earn a total of 7.00 from holding Hubei Yingtong Telecommunication or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Shenzhen Centralcon |
Hubei Yingtong and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Shenzhen Centralcon
The main advantage of trading using opposite Hubei Yingtong and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. Agricultural Bank of | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China |
| Shenzhen Centralcon vs. PetroChina Co Ltd | Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. CNOOC Limited | Shenzhen Centralcon 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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