Correlation Between Hubei Forbon and Ping An
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By analyzing existing cross correlation between Hubei Forbon Technology and Ping An Bank, you can compare the effects of market volatilities on Hubei Forbon and Ping An 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 Forbon with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Ping An.
Diversification Opportunities for Hubei Forbon and Ping An
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Ping is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Ping An Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Bank and Hubei Forbon 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 Forbon Technology are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Bank has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Ping An go up and down completely randomly.
Pair Corralation between Hubei Forbon and Ping An
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 2.08 times more return on investment than Ping An. However, Hubei Forbon is 2.08 times more volatile than Ping An Bank. It trades about 0.07 of its potential returns per unit of risk. Ping An Bank is currently generating about 0.06 per unit of risk. If you would invest 578.00 in Hubei Forbon Technology on August 27, 2024 and sell it today you would earn a total of 229.00 from holding Hubei Forbon Technology or generate 39.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Ping An Bank
Performance |
| Timeline |
| Hubei Forbon Technology |
| Ping An Bank |
Hubei Forbon and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Ping An
The main advantage of trading using opposite Hubei Forbon and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Hubei Forbon vs. Guangzhou Haozhi Industrial | Hubei Forbon vs. Huafa Industrial Co | Hubei Forbon vs. Guangdong Jingyi Metal | Hubei Forbon vs. Shandong Longquan Pipeline |
| Ping An vs. Hubei Forbon Technology | Ping An vs. Hangzhou Gaoxin Rubber | Ping An vs. GRIPM Advanced Materials | Ping An vs. Sinofibers Technology Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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