Correlation Between Hubei Yingtong and Zhongtong Guomai
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Hubei Yingtong and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Zhongtong Guomai.
Diversification Opportunities for Hubei Yingtong and Zhongtong Guomai
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Zhongtong is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Zhongtong Guomai
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to under-perform the Zhongtong Guomai. In addition to that, Hubei Yingtong is 1.79 times more volatile than Zhongtong Guomai Communication. It trades about -0.11 of its total potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.46 per unit of volatility. If you would invest 691.00 in Zhongtong Guomai Communication on December 6, 2024 and sell it today you would earn a total of 189.00 from holding Zhongtong Guomai Communication or generate 27.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Zhongtong Guomai Com |
Hubei Yingtong and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Zhongtong Guomai
The main advantage of trading using opposite Hubei Yingtong and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Hubei Yingtong vs. Jiangsu Jinling Sports | Hubei Yingtong vs. Guangdong Jingyi Metal | Hubei Yingtong vs. Zhejiang Kingland Pipeline | Hubei Yingtong vs. Guangzhou Shangpin Home |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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