Correlation Between Hubei Geoway and Yunnan Yuntou
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By analyzing existing cross correlation between Hubei Geoway Investment and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Hubei Geoway and Yunnan Yuntou 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 Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Yunnan Yuntou.
Diversification Opportunities for Hubei Geoway and Yunnan Yuntou
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Yunnan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology 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 Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Hubei Geoway and Yunnan Yuntou
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 4.17 times less return on investment than Yunnan Yuntou. In addition to that, Hubei Geoway is 1.52 times more volatile than Yunnan Yuntou Ecology. It trades about 0.03 of its total potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about 0.22 per unit of volatility. If you would invest 556.00 in Yunnan Yuntou Ecology on August 25, 2024 and sell it today you would earn a total of 62.00 from holding Yunnan Yuntou Ecology or generate 11.15% 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. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Hubei Geoway Investment |
| Yunnan Yuntou Ecology |
Hubei Geoway and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Yunnan Yuntou
The main advantage of trading using opposite Hubei Geoway and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou'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 |
| Yunnan Yuntou vs. Fiberhome Telecommunication Technologies | Yunnan Yuntou vs. Wuhan Yangtze Communication | Yunnan Yuntou vs. Shenzhen Clou Electronics | Yunnan Yuntou vs. Hangzhou Weiguang Electronic |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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