Correlation Between Hangzhou Gaoxin and Hubei Xingfa
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Hangzhou Gaoxin and Hubei Xingfa 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 Hangzhou Gaoxin with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Hubei Xingfa.
Diversification Opportunities for Hangzhou Gaoxin and Hubei Xingfa
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Hubei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals and Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber are associated (or correlated) with Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Hubei Xingfa
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 0.89 times more return on investment than Hubei Xingfa. However, Hangzhou Gaoxin Rubber is 1.13 times less risky than Hubei Xingfa. It trades about 0.07 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.12 per unit of risk. If you would invest 1,095 in Hangzhou Gaoxin Rubber on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Hangzhou Gaoxin Rubber or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Hubei Xingfa Chemicals |
Hangzhou Gaoxin and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Hubei Xingfa
The main advantage of trading using opposite Hangzhou Gaoxin and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Hangzhou Gaoxin vs. Hangzhou Coco Healthcare | Hangzhou Gaoxin vs. Everjoy Health Group | Hangzhou Gaoxin vs. Hangzhou Pinming Software | Hangzhou Gaoxin vs. Glodon Software Co |
| Hubei Xingfa vs. Ningbo Tip Rubber | Hubei Xingfa vs. Suzhou Xingye Material | Hubei Xingfa vs. Maccura Biotechnology Co | Hubei Xingfa vs. Sinosteel Luonai Materials |
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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