Correlation Between Hubei Geoway and Shenyang Huitian
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By analyzing existing cross correlation between Hubei Geoway Investment and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Hubei Geoway and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shenyang Huitian.
Diversification Opportunities for Hubei Geoway and Shenyang Huitian
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Shenyang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shenyang Huitian
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 3.93 times less return on investment than Shenyang Huitian. But when comparing it to its historical volatility, Hubei Geoway Investment is 1.24 times less risky than Shenyang Huitian. It trades about 0.02 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Shenyang Huitian Thermal on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Shenyang Huitian Thermal or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shenyang Huitian Thermal |
Hubei Geoway and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shenyang Huitian
The main advantage of trading using opposite Hubei Geoway and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Hubei Geoway vs. Ningxia Building Materials | Hubei Geoway vs. Orinko Advanced Plastics | Hubei Geoway vs. Sanxiang Advanced Materials | Hubei Geoway vs. Ningbo Tip Rubber |
| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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