Correlation Between Yingde Greatchem and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yingde Greatchem Chemicals and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Hubei Xingfa.
Diversification Opportunities for Yingde Greatchem and Hubei Xingfa
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yingde and Hubei is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Hubei Xingfa
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Hubei Xingfa. In addition to that, Yingde Greatchem is 1.35 times more volatile than Hubei Xingfa Chemicals. It trades about -0.02 of its total potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.01 per unit of volatility. If you would invest 2,116 in Hubei Xingfa Chemicals on October 16, 2024 and sell it today you would lose (3.00) from holding Hubei Xingfa Chemicals or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Yingde Greatchem Che |
| Hubei Xingfa Chemicals |
Yingde Greatchem and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Hubei Xingfa
The main advantage of trading using opposite Yingde Greatchem and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Hubeiyichang Transportation Group | Yingde Greatchem vs. Jiangsu Broadcasting Cable | Yingde Greatchem vs. Air China Ltd | Yingde Greatchem vs. Fujian Longzhou Transportation |
| Hubei Xingfa vs. Impulse Qingdao Health | Hubei Xingfa vs. Guangdong Silvere Sci | Hubei Xingfa vs. JCHX Mining Management | Hubei Xingfa vs. Yunnan Jianzhijia Health Chain |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings 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 | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |