Correlation Between Zhejiang Juhua and Hubei Xingfa
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By analyzing existing cross correlation between Zhejiang Juhua Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Zhejiang Juhua and Hubei Xingfa 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 Zhejiang Juhua with a short position of Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Hubei Xingfa.
Diversification Opportunities for Zhejiang Juhua and Hubei Xingfa
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zhejiang and Hubei is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals and Zhejiang Juhua 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 Zhejiang Juhua Co are associated (or correlated) with Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Zhejiang Juhua i.e., Zhejiang Juhua and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Hubei Xingfa
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.17 times more return on investment than Hubei Xingfa. However, Zhejiang Juhua is 1.17 times more volatile than Hubei Xingfa Chemicals. It trades about 0.04 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.03 per unit of risk. If you would invest 1,849 in Zhejiang Juhua Co on November 19, 2024 and sell it today you would earn a total of 645.00 from holding Zhejiang Juhua Co or generate 34.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Zhejiang Juhua |
| Hubei Xingfa Chemicals |
Zhejiang Juhua and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Hubei Xingfa
The main advantage of trading using opposite Zhejiang Juhua and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Zhejiang Juhua vs. China Building Material | Zhejiang Juhua vs. Advanced Technology Materials | Zhejiang Juhua vs. Caihong Display Devices | Zhejiang Juhua vs. Super Dragon Engineering Plastics |
| Hubei Xingfa vs. Kontour Medical Technology | Hubei Xingfa vs. Shenzhen MYS Environmental | Hubei Xingfa vs. Suntar Environmental Technology | Hubei Xingfa vs. Nanjing Vishee Medical |
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 CEOs Directory module to screen CEOs from public companies around the world.
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