Correlation Between Hubei Geoway and Shenzhen Noposion
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By analyzing existing cross correlation between Hubei Geoway Investment and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Hubei Geoway and Shenzhen Noposion 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 Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shenzhen Noposion.
Diversification Opportunities for Hubei Geoway and Shenzhen Noposion
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shenzhen Noposion
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Shenzhen Noposion. In addition to that, Hubei Geoway is 1.2 times more volatile than Shenzhen Noposion Agrochemicals. It trades about -0.06 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.08 per unit of volatility. If you would invest 673.00 in Shenzhen Noposion Agrochemicals on October 18, 2024 and sell it today you would earn a total of 349.00 from holding Shenzhen Noposion Agrochemicals or generate 51.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shenzhen Noposion |
Hubei Geoway and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shenzhen Noposion
The main advantage of trading using opposite Hubei Geoway and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shenzhen Noposion 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 Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Hubei Geoway vs. Lootom Telcovideo Network | Hubei Geoway vs. China Asset Management | Hubei Geoway vs. Postal Savings Bank | Hubei Geoway vs. Anhui Jianghuai Automobile |
| Shenzhen Noposion vs. Fibocom Wireless | Shenzhen Noposion vs. Jointo Energy Investment | Shenzhen Noposion vs. Eastern Communications Co | Shenzhen Noposion 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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