Correlation Between Hubei Yingtong and Zhejiang Kingland
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Hubei Yingtong and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Zhejiang Kingland.
Diversification Opportunities for Hubei Yingtong and Zhejiang Kingland
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Zhejiang Kingland
Assuming the 90 days trading horizon Hubei Yingtong is expected to generate 1.81 times less return on investment than Zhejiang Kingland. In addition to that, Hubei Yingtong is 1.33 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.06 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.14 per unit of volatility. If you would invest 534.00 in Zhejiang Kingland Pipeline on August 26, 2024 and sell it today you would earn a total of 83.00 from holding Zhejiang Kingland Pipeline or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Zhejiang Kingland |
Hubei Yingtong and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Zhejiang Kingland
The main advantage of trading using opposite Hubei Yingtong and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Hubei Yingtong vs. Shenzhen MYS Environmental | Hubei Yingtong vs. AVIC Fund Management | Hubei Yingtong vs. Shenzhen Bingchuan Network | Hubei Yingtong vs. Penghua Shenzhen Energy |
| Zhejiang Kingland vs. COL Digital Publishing | Zhejiang Kingland vs. Tianjin Tianyao Pharmaceuticals | Zhejiang Kingland vs. Guocheng Mining Co | Zhejiang Kingland vs. Yonghui Superstores Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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