Correlation Between Hubei Geoway and Changchun
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By analyzing existing cross correlation between Hubei Geoway Investment and Changchun UP Optotech, you can compare the effects of market volatilities on Hubei Geoway and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Changchun.
Diversification Opportunities for Hubei Geoway and Changchun
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Changchun is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Changchun go up and down completely randomly.
Pair Corralation between Hubei Geoway and Changchun
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 0.93 times more return on investment than Changchun. However, Hubei Geoway Investment is 1.07 times less risky than Changchun. It trades about 0.07 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.06 per unit of risk. If you would invest 131.00 in Hubei Geoway Investment on October 14, 2024 and sell it today you would earn a total of 16.00 from holding Hubei Geoway Investment or generate 12.21% 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. Changchun UP Optotech
Performance |
| Timeline |
| Hubei Geoway Investment |
| Changchun UP Optotech |
Hubei Geoway and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Changchun
The main advantage of trading using opposite Hubei Geoway and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Hubei Geoway vs. Muyuan Foodstuff Co | Hubei Geoway vs. Beijing Sanyuan Foods | Hubei Geoway vs. Youyou Foods Co | Hubei Geoway vs. Bohai Leasing Co |
| Changchun vs. Shenyang Blue Silver | Changchun vs. Gem Year Industrial Co | Changchun vs. Qingdao Choho Industrial | Changchun vs. Tonghua Grape Wine |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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