Correlation Between Beijing Ultrapower and Hubei Xingfa
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By analyzing existing cross correlation between Beijing Ultrapower Software and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Beijing Ultrapower and Hubei Xingfa 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 Beijing Ultrapower with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Ultrapower and Hubei Xingfa.
Diversification Opportunities for Beijing Ultrapower and Hubei Xingfa
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Hubei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Ultrapower Software and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals and Beijing Ultrapower 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 Beijing Ultrapower Software are associated (or correlated) with Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Beijing Ultrapower i.e., Beijing Ultrapower and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Beijing Ultrapower and Hubei Xingfa
Assuming the 90 days trading horizon Beijing Ultrapower Software is expected to generate 2.23 times more return on investment than Hubei Xingfa. However, Beijing Ultrapower is 2.23 times more volatile than Hubei Xingfa Chemicals. It trades about 0.01 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.18 per unit of risk. If you would invest 1,201 in Beijing Ultrapower Software on September 29, 2024 and sell it today you would earn a total of 1.00 from holding Beijing Ultrapower Software or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Ultrapower Software vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Beijing Ultrapower |
| Hubei Xingfa Chemicals |
Beijing Ultrapower and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Ultrapower and Hubei Xingfa
The main advantage of trading using opposite Beijing Ultrapower and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Ultrapower position performs unexpectedly, Hubei Xingfa 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 Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Beijing Ultrapower vs. Ming Yang Smart | Beijing Ultrapower vs. 159681 | Beijing Ultrapower vs. 159005 | Beijing Ultrapower vs. Loctek Ergonomic Technology |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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