Correlation Between Hubei Xingfa and Piotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Piotech Inc A, you can compare the effects of market volatilities on Hubei Xingfa and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Piotech.
Diversification Opportunities for Hubei Xingfa and Piotech
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Piotech is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Piotech go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Piotech
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.57 times more return on investment than Piotech. However, Hubei Xingfa Chemicals is 1.76 times less risky than Piotech. It trades about -0.22 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.46 per unit of risk. If you would invest 2,289 in Hubei Xingfa Chemicals on October 10, 2024 and sell it today you would lose (129.00) from holding Hubei Xingfa Chemicals or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Piotech Inc A
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Piotech Inc A |
Hubei Xingfa and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Piotech
The main advantage of trading using opposite Hubei Xingfa and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Hubei Xingfa vs. Air China Ltd | Hubei Xingfa vs. Beijing Mainstreets Investment | Hubei Xingfa vs. Zoy Home Furnishing | Hubei Xingfa vs. Kunwu Jiuding Investment |
| Piotech vs. Hunan Investment Group | Piotech vs. Nanjing Vishee Medical | Piotech vs. Kunwu Jiuding Investment | Piotech vs. Chison Medical Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings 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 | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |