Correlation Between Hubei Forbon and Jinyu Bio
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By analyzing existing cross correlation between Hubei Forbon Technology and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Hubei Forbon and Jinyu Bio 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 Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Jinyu Bio.
Diversification Opportunities for Hubei Forbon and Jinyu Bio
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Jinyu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology 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 Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Jinyu Bio go up and down completely randomly.
Pair Corralation between Hubei Forbon and Jinyu Bio
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.38 times more return on investment than Jinyu Bio. However, Hubei Forbon is 1.38 times more volatile than Jinyu Bio Technology Co. It trades about 0.02 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.05 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Hubei Forbon Technology |
| Jinyu Bio Technology |
Hubei Forbon and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Jinyu Bio
The main advantage of trading using opposite Hubei Forbon and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio'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 |
| Jinyu Bio vs. Tonghua Grape Wine | Jinyu Bio vs. Heilongjiang Transport Development | Jinyu Bio vs. Hubeiyichang Transportation Group | Jinyu Bio vs. Guocheng Mining Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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