Correlation Between Hubei Xingfa and Xizi Clean
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Xizi Clean Energy, you can compare the effects of market volatilities on Hubei Xingfa and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Xizi Clean.
Diversification Opportunities for Hubei Xingfa and Xizi Clean
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Xizi is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Xizi Clean go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Xizi Clean
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Xingfa Chemicals is 1.76 times less risky than Xizi Clean. The stock trades about -0.08 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,201 in Xizi Clean Energy on October 30, 2024 and sell it today you would earn a total of 24.00 from holding Xizi Clean Energy or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Xizi Clean Energy
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Xizi Clean Energy |
Hubei Xingfa and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Xizi Clean
The main advantage of trading using opposite Hubei Xingfa and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean'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 |
| Xizi Clean vs. Shannon Semiconductor Technology | Xizi Clean vs. Ningbo Ligong Online | Xizi Clean vs. Zbit Semiconductor A | Xizi Clean vs. CICC Fund Management |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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