Correlation Between Hubei Xingfa and Yingde Greatchem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Hubei Xingfa and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Yingde Greatchem.
Diversification Opportunities for Hubei Xingfa and Yingde Greatchem
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Yingde is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Yingde Greatchem
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.72 times more return on investment than Yingde Greatchem. However, Hubei Xingfa Chemicals is 1.39 times less risky than Yingde Greatchem. It trades about -0.08 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.1 per unit of risk. If you would invest 2,314 in Hubei Xingfa Chemicals on October 30, 2024 and sell it today you would lose (127.00) from holding Hubei Xingfa Chemicals or give up 5.49% 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. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Yingde Greatchem Che |
Hubei Xingfa and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Yingde Greatchem
The main advantage of trading using opposite Hubei Xingfa and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets |