Correlation Between Hubei Xingfa and Cansino Biologics
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Cansino Biologics, you can compare the effects of market volatilities on Hubei Xingfa and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Cansino Biologics.
Diversification Opportunities for Hubei Xingfa and Cansino Biologics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Cansino is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Cansino Biologics go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Cansino Biologics
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.7 times more return on investment than Cansino Biologics. However, Hubei Xingfa Chemicals is 1.42 times less risky than Cansino Biologics. It trades about -0.08 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.15 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Cansino Biologics
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Cansino Biologics |
Hubei Xingfa and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Cansino Biologics
The main advantage of trading using opposite Hubei Xingfa and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' 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 |
| Cansino Biologics vs. Zhongyin Babi Food | Cansino Biologics vs. Zhejiang Construction Investment | Cansino Biologics vs. Guilin Seamild Foods | Cansino Biologics vs. Tsingtao Brewery 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 Stocks Directory module to find actively traded stocks across global markets.
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