Correlation Between Hubei Forbon and Gansu Huangtai
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By analyzing existing cross correlation between Hubei Forbon Technology and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Hubei Forbon and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Gansu Huangtai.
Diversification Opportunities for Hubei Forbon and Gansu Huangtai
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Gansu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Hubei Forbon and Gansu Huangtai
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 0.88 times more return on investment than Gansu Huangtai. However, Hubei Forbon Technology is 1.14 times less risky than Gansu Huangtai. It trades about 0.03 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.01 per unit of risk. 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 |
Hubei Forbon Technology vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Hubei Forbon Technology |
| Gansu Huangtai Wine |
Hubei Forbon and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Gansu Huangtai
The main advantage of trading using opposite Hubei Forbon and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Hubei Forbon vs. UE Furniture Co | Hubei Forbon vs. Shandong Publishing Media | Hubei Forbon vs. Zoy Home Furnishing | Hubei Forbon vs. Heilongjiang Publishing Media |
| Gansu Huangtai vs. Hubei Forbon Technology | Gansu Huangtai vs. Hongrun Construction Group | Gansu Huangtai vs. Allied Machinery Co | Gansu Huangtai vs. Peoples Insurance of |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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