Correlation Between China Fortune and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Fortune Land and Hubei Forbon Technology, you can compare the effects of market volatilities on China Fortune and Hubei Forbon 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 China Fortune with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Hubei Forbon.
Diversification Opportunities for China Fortune and Hubei Forbon
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Hubei is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology and China Fortune 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 China Fortune Land are associated (or correlated) with Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of China Fortune i.e., China Fortune and Hubei Forbon go up and down completely randomly.
Pair Corralation between China Fortune and Hubei Forbon
Assuming the 90 days trading horizon China Fortune is expected to generate 2.3 times less return on investment than Hubei Forbon. In addition to that, China Fortune is 1.25 times more volatile than Hubei Forbon Technology. It trades about 0.01 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.02 per unit of volatility. If you would invest 774.00 in Hubei Forbon Technology on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Hubei Forbon Technology or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Hubei Forbon Technology
Performance |
| Timeline |
| China Fortune Land |
| Hubei Forbon Technology |
China Fortune and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Hubei Forbon
The main advantage of trading using opposite China Fortune and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune position performs unexpectedly, Hubei Forbon 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 Forbon will offset losses from the drop in Hubei Forbon's long position.| China Fortune vs. Xinjiang Beixin RoadBridge | China Fortune vs. Chengdu Xinzhu RoadBridge | China Fortune vs. Zhongshan Broad Ocean Motor | China Fortune vs. Anhui Transport Consulting |
| Hubei Forbon vs. Spring Airlines Co | Hubei Forbon vs. Xiandai Investment Co | Hubei Forbon vs. GRIPM Advanced Materials | Hubei Forbon vs. Beijing Mainstreets Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |