Correlation Between Hubei Forbon and Hubei Dinglong
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By analyzing existing cross correlation between Hubei Forbon Technology and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Hubei Forbon and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Hubei Dinglong.
Diversification Opportunities for Hubei Forbon and Hubei Dinglong
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Hubei is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Hubei Forbon and Hubei Dinglong
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.14 times more return on investment than Hubei Dinglong. However, Hubei Forbon is 1.14 times more volatile than Hubei Dinglong Chemical. It trades about 0.02 of its potential returns per unit of risk. Hubei Dinglong Chemical is currently generating about 0.02 per unit of risk. If you would invest 703.00 in Hubei Forbon Technology on October 16, 2024 and sell it today you would earn a total of 80.00 from holding Hubei Forbon Technology or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Hubei Forbon Technology |
| Hubei Dinglong Chemical |
Hubei Forbon and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Hubei Dinglong
The main advantage of trading using opposite Hubei Forbon and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong's long position.| Hubei Forbon vs. Invengo Information Technology | Hubei Forbon vs. ButOne Information Corp | Hubei Forbon vs. Zhengping RoadBridge Constr | Hubei Forbon vs. Chengdu Xinzhu RoadBridge |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining |
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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