Correlation Between Hubei Forbon and Epoxy Base
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By analyzing existing cross correlation between Hubei Forbon Technology and Epoxy Base Electronic, you can compare the effects of market volatilities on Hubei Forbon and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Epoxy Base.
Diversification Opportunities for Hubei Forbon and Epoxy Base
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Epoxy is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Epoxy Base go up and down completely randomly.
Pair Corralation between Hubei Forbon and Epoxy Base
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 0.72 times more return on investment than Epoxy Base. However, Hubei Forbon Technology is 1.39 times less risky than Epoxy Base. It trades about 0.05 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.04 per unit of risk. If you would invest 802.00 in Hubei Forbon Technology on October 26, 2024 and sell it today you would earn a total of 18.00 from holding Hubei Forbon Technology or generate 2.24% 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. Epoxy Base Electronic
Performance |
| Timeline |
| Hubei Forbon Technology |
| Epoxy Base Electronic |
Hubei Forbon and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Epoxy Base
The main advantage of trading using opposite Hubei Forbon and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base'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 |
| Epoxy Base vs. Eyebright Medical Technology | Epoxy Base vs. Jinyu Bio Technology Co | Epoxy Base vs. Hubei Forbon Technology | Epoxy Base vs. Uxi Unicomp Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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