Correlation Between Hubei Xingfa and Jiangsu Broadcasting
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Hubei Xingfa and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Jiangsu Broadcasting.
Diversification Opportunities for Hubei Xingfa and Jiangsu Broadcasting
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Jiangsu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Jiangsu Broadcasting
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 1.14 times more return on investment than Jiangsu Broadcasting. However, Hubei Xingfa is 1.14 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.02 per unit of risk. If you would invest 2,022 in Hubei Xingfa Chemicals on October 14, 2024 and sell it today you would earn a total of 67.00 from holding Hubei Xingfa Chemicals or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Jiangsu Broadcasting |
Hubei Xingfa and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Jiangsu Broadcasting
The main advantage of trading using opposite Hubei Xingfa and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Hubei Xingfa vs. Keda Clean Energy | Hubei Xingfa vs. Shenzhen Zhongzhuang Construction | Hubei Xingfa vs. Nanxing Furniture Machinery | Hubei Xingfa vs. Shaanxi Meineng Clean |
| Jiangsu Broadcasting vs. Shandong Polymer Biochemicals | Jiangsu Broadcasting vs. Air China Ltd | Jiangsu Broadcasting vs. Shenzhen Glory Medical | Jiangsu Broadcasting vs. Hubei Xingfa Chemicals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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