Correlation Between Hubei Geoway and Shenzhen Hifuture
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By analyzing existing cross correlation between Hubei Geoway Investment and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Hubei Geoway and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shenzhen Hifuture.
Diversification Opportunities for Hubei Geoway and Shenzhen Hifuture
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Shenzhen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shenzhen Hifuture
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 6.4 times less return on investment than Shenzhen Hifuture. In addition to that, Hubei Geoway is 1.08 times more volatile than Shenzhen Hifuture Electric. It trades about 0.03 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.18 per unit of volatility. If you would invest 215.00 in Shenzhen Hifuture Electric on August 25, 2024 and sell it today you would earn a total of 47.00 from holding Shenzhen Hifuture Electric or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shenzhen Hifuture |
Hubei Geoway and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shenzhen Hifuture
The main advantage of trading using opposite Hubei Geoway and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture'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 |
| Shenzhen Hifuture vs. Beijing Mainstreets Investment | Shenzhen Hifuture vs. Hainan Haiqi Transportation | Shenzhen Hifuture vs. Dazhong Transportation Group | Shenzhen Hifuture vs. Shuhua Sports Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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