Correlation Between Hubei Tech and Shaanxi Lighte
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By analyzing existing cross correlation between Hubei Tech Semiconductors and Shaanxi Lighte Optoelectronics, you can compare the effects of market volatilities on Hubei Tech and Shaanxi Lighte 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 Tech with a short position of Shaanxi Lighte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Tech and Shaanxi Lighte.
Diversification Opportunities for Hubei Tech and Shaanxi Lighte
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Shaanxi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Tech Semiconductors and Shaanxi Lighte Optoelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Lighte Optoe and Hubei Tech 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 Tech Semiconductors are associated (or correlated) with Shaanxi Lighte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Lighte Optoe has no effect on the direction of Hubei Tech i.e., Hubei Tech and Shaanxi Lighte go up and down completely randomly.
Pair Corralation between Hubei Tech and Shaanxi Lighte
Assuming the 90 days trading horizon Hubei Tech Semiconductors is expected to generate 1.19 times more return on investment than Shaanxi Lighte. However, Hubei Tech is 1.19 times more volatile than Shaanxi Lighte Optoelectronics. It trades about 0.01 of its potential returns per unit of risk. Shaanxi Lighte Optoelectronics is currently generating about -0.09 per unit of risk. If you would invest 3,190 in Hubei Tech Semiconductors on November 4, 2024 and sell it today you would lose (15.00) from holding Hubei Tech Semiconductors or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Tech Semiconductors vs. Shaanxi Lighte Optoelectronics
Performance |
| Timeline |
| Hubei Tech Semiconductors |
| Shaanxi Lighte Optoe |
Hubei Tech and Shaanxi Lighte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Tech and Shaanxi Lighte
The main advantage of trading using opposite Hubei Tech and Shaanxi Lighte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Tech position performs unexpectedly, Shaanxi Lighte 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 Shaanxi Lighte will offset losses from the drop in Shaanxi Lighte's long position.| Hubei Tech vs. China Publishing Media | Hubei Tech vs. Ningbo Fangzheng Automobile | Hubei Tech vs. Simei Media Co | Hubei Tech vs. Ciwen Media Co |
| Shaanxi Lighte vs. Guangdong Qunxing Toys | Shaanxi Lighte vs. Biwin Storage Technology | Shaanxi Lighte vs. Invengo Information Technology | Shaanxi Lighte vs. Zhongfu Information |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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