Correlation Between Hubei Xingfa and Guangdong Silvere
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Guangdong Silvere Sci, you can compare the effects of market volatilities on Hubei Xingfa and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Guangdong Silvere.
Diversification Opportunities for Hubei Xingfa and Guangdong Silvere
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Guangdong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Guangdong Silvere
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.35 times more return on investment than Guangdong Silvere. However, Hubei Xingfa Chemicals is 2.89 times less risky than Guangdong Silvere. It trades about -0.22 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about -0.23 per unit of risk. If you would invest 2,236 in Hubei Xingfa Chemicals on October 17, 2024 and sell it today you would lose (123.00) from holding Hubei Xingfa Chemicals or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Guangdong Silvere Sci |
Hubei Xingfa and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Guangdong Silvere
The main advantage of trading using opposite Hubei Xingfa and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Hubei Xingfa vs. Luyin Investment Group | Hubei Xingfa vs. Chengdu Xingrong Investment | Hubei Xingfa vs. Xiandai Investment Co | Hubei Xingfa vs. Fujian Longzhou Transportation |
| Guangdong Silvere vs. Sichuan Jinshi Technology | Guangdong Silvere vs. FSPG Hi Tech Co | Guangdong Silvere vs. Guangdong Shenglu Telecommunication | Guangdong Silvere vs. Shanghai Shibei Hi Tech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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