Correlation Between Hubei Forbon and Cultural Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Forbon Technology and Cultural Investment Holdings, you can compare the effects of market volatilities on Hubei Forbon and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Cultural Investment.
Diversification Opportunities for Hubei Forbon and Cultural Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Cultural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Cultural Investment go up and down completely randomly.
Pair Corralation between Hubei Forbon and Cultural Investment
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.16 times more return on investment than Cultural Investment. However, Hubei Forbon is 1.16 times more volatile than Cultural Investment Holdings. It trades about 0.06 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.05 per unit of risk. If you would invest 770.00 in Hubei Forbon Technology on October 17, 2024 and sell it today you would earn a total of 49.00 from holding Hubei Forbon Technology or generate 6.36% 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. Cultural Investment Holdings
Performance |
Timeline |
Hubei Forbon Technology |
Cultural Investment |
Hubei Forbon and Cultural Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hubei Forbon and Cultural Investment
The main advantage of trading using opposite Hubei Forbon and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
Cultural Investment vs. Keeson Technology Corp | Cultural Investment vs. Bangyan Technology Co | Cultural Investment vs. Hubei Forbon Technology | Cultural Investment vs. Soyea Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |