Correlation Between Hubei Xingfa and CSG Holding
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and CSG Holding Co, you can compare the effects of market volatilities on Hubei Xingfa and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and CSG Holding.
Diversification Opportunities for Hubei Xingfa and CSG Holding
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and CSG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and CSG Holding go up and down completely randomly.
Pair Corralation between Hubei Xingfa and CSG Holding
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 1.4 times more return on investment than CSG Holding. However, Hubei Xingfa is 1.4 times more volatile than CSG Holding Co. It trades about 0.06 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.06 per unit of risk. If you would invest 1,967 in Hubei Xingfa Chemicals on November 2, 2024 and sell it today you would earn a total of 220.00 from holding Hubei Xingfa Chemicals or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. CSG Holding Co
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| CSG Holding |
Hubei Xingfa and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and CSG Holding
The main advantage of trading using opposite Hubei Xingfa and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Hubei Xingfa vs. Linewell Software Co | Hubei Xingfa vs. Sportsoul Co Ltd | Hubei Xingfa vs. Yingde Greatchem Chemicals | Hubei Xingfa vs. Changjiang Publishing Media |
| CSG Holding vs. Zhangjiagang Freetrade Science | CSG Holding vs. Qiaoyin Environmental Tech | CSG Holding vs. Guangdong Liantai Environmental | CSG Holding vs. Easyhome New Retail |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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