Correlation Between Hubei Forbon and Changsha Jingjia
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By analyzing existing cross correlation between Hubei Forbon Technology and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Hubei Forbon and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Changsha Jingjia.
Diversification Opportunities for Hubei Forbon and Changsha Jingjia
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Changsha is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Hubei Forbon and Changsha Jingjia
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to under-perform the Changsha Jingjia. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Forbon Technology is 1.17 times less risky than Changsha Jingjia. The stock trades about -0.22 of its potential returns per unit of risk. The Changsha Jingjia Microelectronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,229 in Changsha Jingjia Microelectronics on October 17, 2024 and sell it today you would earn a total of 52.00 from holding Changsha Jingjia Microelectronics or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Hubei Forbon Technology |
| Changsha Jingjia Mic |
Hubei Forbon and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Changsha Jingjia
The main advantage of trading using opposite Hubei Forbon and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Shandong Gold Mining |
| Changsha Jingjia vs. 360 Security Technology | Changsha Jingjia vs. Hubei Forbon Technology | Changsha Jingjia vs. Tianjin Ruixin Technology | Changsha Jingjia vs. Luyin Investment Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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