Correlation Between Hubei Forbon and Jilin Jlu
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By analyzing existing cross correlation between Hubei Forbon Technology and Jilin Jlu Communication, you can compare the effects of market volatilities on Hubei Forbon and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Jilin Jlu.
Diversification Opportunities for Hubei Forbon and Jilin Jlu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Jilin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Jilin Jlu go up and down completely randomly.
Pair Corralation between Hubei Forbon and Jilin Jlu
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 0.93 times more return on investment than Jilin Jlu. However, Hubei Forbon Technology is 1.08 times less risky than Jilin Jlu. It trades about 0.02 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.01 per unit of risk. If you would invest 774.00 in Hubei Forbon Technology on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Hubei Forbon Technology or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Jilin Jlu Communication
Performance |
| Timeline |
| Hubei Forbon Technology |
| Jilin Jlu Communication |
Hubei Forbon and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Jilin Jlu
The main advantage of trading using opposite Hubei Forbon and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Hubei Forbon vs. Spring Airlines Co | Hubei Forbon vs. Xiandai Investment Co | Hubei Forbon vs. GRIPM Advanced Materials | Hubei Forbon vs. Beijing Mainstreets Investment |
| Jilin Jlu vs. Tonghua Grape Wine | Jilin Jlu vs. Zhongshan Public Utilities | Jilin Jlu vs. Southern PublishingMedia Co | Jilin Jlu vs. Northern United Publishing |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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