Correlation Between Hubei Xingfa and Lander Sports
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Lander Sports Development, you can compare the effects of market volatilities on Hubei Xingfa and Lander Sports 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 Xingfa with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Lander Sports.
Diversification Opportunities for Hubei Xingfa and Lander Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Lander is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Hubei Xingfa 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 Xingfa Chemicals are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Lander Sports go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Lander Sports
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.86 times more return on investment than Lander Sports. However, Hubei Xingfa Chemicals is 1.17 times less risky than Lander Sports. It trades about 0.0 of its potential returns per unit of risk. Lander Sports Development is currently generating about -0.13 per unit of risk. If you would invest 2,290 in Hubei Xingfa Chemicals on August 28, 2024 and sell it today you would lose (17.00) from holding Hubei Xingfa Chemicals or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Lander Sports Development
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Lander Sports Development |
Hubei Xingfa and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Lander Sports
The main advantage of trading using opposite Hubei Xingfa and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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