Correlation Between Hubei Xingfa and Shanghai Newtouch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Xingfa Chemicals and Shanghai Newtouch Software, you can compare the effects of market volatilities on Hubei Xingfa and Shanghai Newtouch 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 Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Shanghai Newtouch.
Diversification Opportunities for Hubei Xingfa and Shanghai Newtouch
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Shanghai is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Shanghai Newtouch
Assuming the 90 days trading horizon Hubei Xingfa is expected to generate 2.34 times less return on investment than Shanghai Newtouch. But when comparing it to its historical volatility, Hubei Xingfa Chemicals is 2.09 times less risky than Shanghai Newtouch. It trades about 0.06 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,204 in Shanghai Newtouch Software on November 3, 2024 and sell it today you would earn a total of 647.00 from holding Shanghai Newtouch Software or generate 53.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Shanghai Newtouch |
Hubei Xingfa and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Shanghai Newtouch
The main advantage of trading using opposite Hubei Xingfa and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Shanghai Newtouch 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 Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Hubei Xingfa vs. Jiangsu Financial Leasing | Hubei Xingfa vs. Qilu Bank Co | Hubei Xingfa vs. Unisplendour Corp | Hubei Xingfa vs. Anhui Shiny Electronic |
| Shanghai Newtouch vs. Guangzhou Restaurants Group | Shanghai Newtouch vs. Dhc Software Co | Shanghai Newtouch vs. Cabio Biotech Wuhan | Shanghai Newtouch vs. Jinhe Biotechnology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |