Correlation Between Hubei Forbon and Zhangjiagang Elegant
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By analyzing existing cross correlation between Hubei Forbon Technology and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on Hubei Forbon and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Zhangjiagang Elegant.
Diversification Opportunities for Hubei Forbon and Zhangjiagang Elegant
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Zhangjiagang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between Hubei Forbon and Zhangjiagang Elegant
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.17 times more return on investment than Zhangjiagang Elegant. However, Hubei Forbon is 1.17 times more volatile than Zhangjiagang Elegant Home. It trades about 0.03 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.01 per unit of risk. If you would invest 798.00 in Hubei Forbon Technology on October 24, 2024 and sell it today you would earn a total of 23.00 from holding Hubei Forbon Technology or generate 2.88% 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. Zhangjiagang Elegant Home
Performance |
| Timeline |
| Hubei Forbon Technology |
| Zhangjiagang Elegant Home |
Hubei Forbon and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Zhangjiagang Elegant
The main advantage of trading using opposite Hubei Forbon and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Xinjiang Baodi Mining | Hubei Forbon vs. Western Mining Co | Hubei Forbon vs. Miracll Chemicals Co |
| Zhangjiagang Elegant vs. Zhejiang Kingland Pipeline | Zhangjiagang Elegant vs. Tianjin Hi Tech Development | Zhangjiagang Elegant vs. Soyea Technology Co | Zhangjiagang Elegant vs. Hubei Forbon 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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