Correlation Between Hubei Xingfa and IRay Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and iRay Technology Co, you can compare the effects of market volatilities on Hubei Xingfa and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and IRay Technology.
Diversification Opportunities for Hubei Xingfa and IRay Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and IRay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and IRay Technology go up and down completely randomly.
Pair Corralation between Hubei Xingfa and IRay Technology
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.65 times more return on investment than IRay Technology. However, Hubei Xingfa Chemicals is 1.55 times less risky than IRay Technology. It trades about -0.01 of its potential returns per unit of risk. iRay Technology Co is currently generating about -0.02 per unit of risk. If you would invest 2,934 in Hubei Xingfa Chemicals on September 12, 2024 and sell it today you would lose (658.00) from holding Hubei Xingfa Chemicals or give up 22.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. iRay Technology Co
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| iRay Technology |
Hubei Xingfa and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and IRay Technology
The main advantage of trading using opposite Hubei Xingfa and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology's long position.| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Rongsheng Petrochemical Co |
| IRay Technology vs. BTG Hotels Group | IRay Technology vs. Huatian Hotel Group | IRay Technology vs. Nanxing Furniture Machinery | IRay Technology vs. Huaxia Fund Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |