Correlation Between Guilin Seamild and Hubei Forbon
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By analyzing existing cross correlation between Guilin Seamild Foods and Hubei Forbon Technology, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Hubei Forbon.
Diversification Opportunities for Guilin Seamild and Hubei Forbon
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guilin and Hubei is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Hubei Forbon go up and down completely randomly.
Pair Corralation between Guilin Seamild and Hubei Forbon
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 1.05 times less return on investment than Hubei Forbon. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.23 times less risky than Hubei Forbon. It trades about 0.03 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 704.00 in Hubei Forbon Technology on October 16, 2024 and sell it today you would earn a total of 115.00 from holding Hubei Forbon Technology or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Hubei Forbon Technology
Performance |
| Timeline |
| Guilin Seamild Foods |
| Hubei Forbon Technology |
Guilin Seamild and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Hubei Forbon
The main advantage of trading using opposite Guilin Seamild and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
| Hubei Forbon vs. UE Furniture Co | Hubei Forbon vs. Shandong Publishing Media | Hubei Forbon vs. Zoy Home Furnishing | Hubei Forbon vs. Heilongjiang Publishing Media |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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