Correlation Between Hubei Xingfa and Kunwu Jiuding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Hubei Xingfa and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Kunwu Jiuding.
Diversification Opportunities for Hubei Xingfa and Kunwu Jiuding
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Kunwu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Kunwu Jiuding
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Kunwu Jiuding. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Xingfa Chemicals is 3.2 times less risky than Kunwu Jiuding. The stock trades about -0.28 of its potential returns per unit of risk. The Kunwu Jiuding Investment is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Kunwu Jiuding Investment on October 16, 2024 and sell it today you would lose (93.00) from holding Kunwu Jiuding Investment or give up 5.81% 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. Kunwu Jiuding Investment
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Kunwu Jiuding Investment |
Hubei Xingfa and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Kunwu Jiuding
The main advantage of trading using opposite Hubei Xingfa and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Hubei Xingfa vs. Impulse Qingdao Health | Hubei Xingfa vs. Guangdong Silvere Sci | Hubei Xingfa vs. JCHX Mining Management | Hubei Xingfa vs. Yunnan Jianzhijia Health Chain |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Hubeiyichang Transportation Group | Kunwu Jiuding vs. China Sports Industry |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |