Correlation Between Hubei Geoway and Financial Street
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By analyzing existing cross correlation between Hubei Geoway Investment and Financial Street Holdings, you can compare the effects of market volatilities on Hubei Geoway and Financial Street 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 Geoway with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Financial Street.
Diversification Opportunities for Hubei Geoway and Financial Street
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Financial is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Hubei Geoway 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 Geoway Investment are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Financial Street go up and down completely randomly.
Pair Corralation between Hubei Geoway and Financial Street
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.55 times more return on investment than Financial Street. However, Hubei Geoway is 1.55 times more volatile than Financial Street Holdings. It trades about -0.01 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.27 per unit of risk. If you would invest 148.00 in Hubei Geoway Investment on October 30, 2024 and sell it today you would lose (7.00) from holding Hubei Geoway Investment or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Financial Street Holdings
Performance |
| Timeline |
| Hubei Geoway Investment |
| Financial Street Holdings |
Hubei Geoway and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Financial Street
The main advantage of trading using opposite Hubei Geoway and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Financial Street vs. Hainan Mining Co | Financial Street vs. East Money Information | Financial Street vs. Guangzhou Ruoyuchen Information | Financial Street vs. Longmaster Information Tech |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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