Correlation Between Hubei Forbon and Guilin Seamild
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By analyzing existing cross correlation between Hubei Forbon Technology and Guilin Seamild Foods, you can compare the effects of market volatilities on Hubei Forbon and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Guilin Seamild.
Diversification Opportunities for Hubei Forbon and Guilin Seamild
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Guilin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Guilin Seamild go up and down completely randomly.
Pair Corralation between Hubei Forbon and Guilin Seamild
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.23 times more return on investment than Guilin Seamild. However, Hubei Forbon is 1.23 times more volatile than Guilin Seamild Foods. It trades about 0.03 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.03 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. Guilin Seamild Foods
Performance |
| Timeline |
| Hubei Forbon Technology |
| Guilin Seamild Foods |
Hubei Forbon and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Guilin Seamild
The main advantage of trading using opposite Hubei Forbon and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild'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 |
| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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