Correlation Between Hubei Geoway and Hengli Industrial
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By analyzing existing cross correlation between Hubei Geoway Investment and Hengli Industrial Development, you can compare the effects of market volatilities on Hubei Geoway and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Hengli Industrial.
Diversification Opportunities for Hubei Geoway and Hengli Industrial
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Hengli is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Hengli Industrial go up and down completely randomly.
Pair Corralation between Hubei Geoway and Hengli Industrial
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 0.83 times more return on investment than Hengli Industrial. However, Hubei Geoway Investment is 1.21 times less risky than Hengli Industrial. It trades about -0.01 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.02 per unit of risk. If you would invest 206.00 in Hubei Geoway Investment on October 16, 2024 and sell it today you would lose (59.00) from holding Hubei Geoway Investment or give up 28.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Hengli Industrial Development
Performance |
| Timeline |
| Hubei Geoway Investment |
| Hengli Industrial |
Hubei Geoway and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Hengli Industrial
The main advantage of trading using opposite Hubei Geoway and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Hubei Geoway vs. Tongxing Environmental Protection | Hubei Geoway vs. Penyao Environmental Protection | Hubei Geoway vs. Shuhua Sports Co | Hubei Geoway vs. Beijing Jiaman Dress |
| Hengli Industrial vs. Shanghai Material Trading | Hengli Industrial vs. Jointo Energy Investment | Hengli Industrial vs. Beijing Mainstreets Investment | Hengli Industrial vs. Hubei Geoway 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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