Correlation Between Hubei Xingfa and Wuxi Xuelang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Wuxi Xuelang Environmental, you can compare the effects of market volatilities on Hubei Xingfa and Wuxi Xuelang 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 Wuxi Xuelang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Wuxi Xuelang.
Diversification Opportunities for Hubei Xingfa and Wuxi Xuelang
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Wuxi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Wuxi Xuelang Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xuelang Environ 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 Wuxi Xuelang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xuelang Environ has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Wuxi Xuelang go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Wuxi Xuelang
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Wuxi Xuelang. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Xingfa Chemicals is 1.58 times less risky than Wuxi Xuelang. The stock trades about -0.02 of its potential returns per unit of risk. The Wuxi Xuelang Environmental is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 599.00 in Wuxi Xuelang Environmental on October 29, 2024 and sell it today you would lose (135.00) from holding Wuxi Xuelang Environmental or give up 22.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Wuxi Xuelang Environmental
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Wuxi Xuelang Environ |
Hubei Xingfa and Wuxi Xuelang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Wuxi Xuelang
The main advantage of trading using opposite Hubei Xingfa and Wuxi Xuelang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Wuxi Xuelang 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 Wuxi Xuelang will offset losses from the drop in Wuxi Xuelang's long position.| Hubei Xingfa vs. Great Sun Foods Co | Hubei Xingfa vs. Heilongjiang Transport Development | Hubei Xingfa vs. Qingdao Foods Co | Hubei Xingfa vs. Sichuan Fulin Transportation |
| Wuxi Xuelang vs. China Longyuan Power | Wuxi Xuelang vs. PetroChina Co Ltd | Wuxi Xuelang vs. Guangxi Guiguan Electric | Wuxi Xuelang vs. Yantai North Andre |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |