Correlation Between Hubei Xingfa and North Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and North Copper Shanxi, you can compare the effects of market volatilities on Hubei Xingfa and North Copper 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 North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and North Copper.
Diversification Opportunities for Hubei Xingfa and North Copper
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and North is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi 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 North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and North Copper go up and down completely randomly.
Pair Corralation between Hubei Xingfa and North Copper
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the North Copper. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Xingfa Chemicals is 2.07 times less risky than North Copper. The stock trades about -0.08 of its potential returns per unit of risk. The North Copper Shanxi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 857.00 in North Copper Shanxi on October 30, 2024 and sell it today you would earn a total of 49.00 from holding North Copper Shanxi or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. North Copper Shanxi
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| North Copper Shanxi |
Hubei Xingfa and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and North Copper
The main advantage of trading using opposite Hubei Xingfa and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| Hubei Xingfa vs. Chengtun Mining Group | Hubei Xingfa vs. Zhongrun Resources Investment | Hubei Xingfa vs. Tieling Newcity Investment | Hubei Xingfa vs. Suzhou Industrial Park |
| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |