Correlation Between Hubei Forbon and Keeson Technology
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By analyzing existing cross correlation between Hubei Forbon Technology and Keeson Technology Corp, you can compare the effects of market volatilities on Hubei Forbon and Keeson Technology 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 Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Keeson Technology.
Diversification Opportunities for Hubei Forbon and Keeson Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Keeson is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp 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 Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Hubei Forbon i.e., Hubei Forbon and Keeson Technology go up and down completely randomly.
Pair Corralation between Hubei Forbon and Keeson Technology
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to under-perform the Keeson Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Forbon Technology is 1.62 times less risky than Keeson Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Keeson Technology Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,024 in Keeson Technology Corp on October 30, 2024 and sell it today you would earn a total of 90.00 from holding Keeson Technology Corp or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Keeson Technology Corp
Performance |
| Timeline |
| Hubei Forbon Technology |
| Keeson Technology Corp |
Hubei Forbon and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Keeson Technology
The main advantage of trading using opposite Hubei Forbon and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon position performs unexpectedly, Keeson Technology 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Hubei Forbon vs. Maoming Petro Chemical Shihua | Hubei Forbon vs. Guocheng Mining Co | Hubei Forbon vs. Ningbo Jintian Copper | Hubei Forbon vs. Rising Nonferrous Metals |
| Keeson Technology vs. Cloud Live Technology | Keeson Technology vs. Nanjing Putian Telecommunications | Keeson Technology vs. Shenzhen Coship Electronics | Keeson Technology vs. Shenzhen Hifuture Electric |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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