Correlation Between Jiangsu Hoperun and Hubeiyichang Transportation
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Jiangsu Hoperun and Hubeiyichang Transportation 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 Jiangsu Hoperun with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Hubeiyichang Transportation.
Diversification Opportunities for Jiangsu Hoperun and Hubeiyichang Transportation
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Hubeiyichang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Jiangsu Hoperun 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 Jiangsu Hoperun Software are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Jiangsu Hoperun i.e., Jiangsu Hoperun and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Hubeiyichang Transportation
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to generate 2.57 times more return on investment than Hubeiyichang Transportation. However, Jiangsu Hoperun is 2.57 times more volatile than Hubeiyichang Transportation Group. It trades about 0.06 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.0 per unit of risk. If you would invest 2,059 in Jiangsu Hoperun Software on October 16, 2024 and sell it today you would earn a total of 2,508 from holding Jiangsu Hoperun Software or generate 121.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Hubeiyichang Transportation |
Jiangsu Hoperun and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Hubeiyichang Transportation
The main advantage of trading using opposite Jiangsu Hoperun and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Jiangsu Hoperun vs. Ping An Insurance | Jiangsu Hoperun vs. Industrial Bank Co | Jiangsu Hoperun vs. GRG Banking Equipment | Jiangsu Hoperun vs. Panda Financial Holding |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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