Correlation Between Hubei Geoway and China Securities
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By analyzing existing cross correlation between Hubei Geoway Investment and China Securities 800, you can compare the effects of market volatilities on Hubei Geoway and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and China Securities.
Diversification Opportunities for Hubei Geoway and China Securities
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and China Securities go up and down completely randomly.
Pair Corralation between Hubei Geoway and China Securities
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.62 times more return on investment than China Securities. However, Hubei Geoway is 1.62 times more volatile than China Securities 800. It trades about 0.1 of its potential returns per unit of risk. China Securities 800 is currently generating about 0.09 per unit of risk. If you would invest 140.00 in Hubei Geoway Investment on September 21, 2024 and sell it today you would earn a total of 44.00 from holding Hubei Geoway Investment or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. China Securities 800
Performance |
| Timeline |
Hubei Geoway and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Hubei Geoway Investment
Pair trading matchups for Hubei Geoway
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Hubei Geoway and China Securities
The main advantage of trading using opposite Hubei Geoway and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' 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 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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