Correlation Between Hubei Xingfa and Miracll Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Miracll Chemicals Co, you can compare the effects of market volatilities on Hubei Xingfa and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Miracll Chemicals.
Diversification Opportunities for Hubei Xingfa and Miracll Chemicals
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Miracll is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Miracll Chemicals
Assuming the 90 days trading horizon Hubei Xingfa is expected to generate 2.35 times less return on investment than Miracll Chemicals. But when comparing it to its historical volatility, Hubei Xingfa Chemicals is 1.72 times less risky than Miracll Chemicals. It trades about 0.09 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,499 in Miracll Chemicals Co on August 28, 2024 and sell it today you would earn a total of 339.00 from holding Miracll Chemicals Co or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Miracll Chemicals Co
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Miracll Chemicals |
Hubei Xingfa and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Miracll Chemicals
The main advantage of trading using opposite Hubei Xingfa and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining | Miracll Chemicals vs. Rongsheng Petrochemical Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |