Correlation Between Hubei Forbon and Shenzhen Noposion
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By analyzing existing cross correlation between Hubei Forbon Technology and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Hubei Forbon and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Shenzhen Noposion.
Diversification Opportunities for Hubei Forbon and Shenzhen Noposion
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Hubei Forbon and Shenzhen Noposion
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.44 times more return on investment than Shenzhen Noposion. However, Hubei Forbon is 1.44 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.09 per unit of risk. If you would invest 612.00 in Hubei Forbon Technology on September 3, 2024 and sell it today you would earn a total of 291.00 from holding Hubei Forbon Technology or generate 47.55% 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. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Hubei Forbon Technology |
| Shenzhen Noposion |
Hubei Forbon and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Shenzhen Noposion
The main advantage of trading using opposite Hubei Forbon and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Rongsheng Petrochemical Co | Hubei Forbon vs. Hoshine Silicon Ind |
| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co | Shenzhen Noposion vs. Hoshine Silicon Ind |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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