Correlation Between Hubei Geoway and Anhui Jinhe
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By analyzing existing cross correlation between Hubei Geoway Investment and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Hubei Geoway and Anhui Jinhe 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 Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Anhui Jinhe.
Diversification Opportunities for Hubei Geoway and Anhui Jinhe
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Anhui is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Hubei Geoway and Anhui Jinhe
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Anhui Jinhe. In addition to that, Hubei Geoway is 1.9 times more volatile than Anhui Jinhe Industrial. It trades about -0.09 of its total potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.25 per unit of volatility. If you would invest 2,240 in Anhui Jinhe Industrial on November 4, 2024 and sell it today you would earn a total of 175.00 from holding Anhui Jinhe Industrial or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Hubei Geoway Investment |
| Anhui Jinhe Industrial |
Hubei Geoway and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Anhui Jinhe
The main advantage of trading using opposite Hubei Geoway and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Hubei Geoway vs. Lecron Energy Saving | Hubei Geoway vs. Unisplendour Corp | Hubei Geoway vs. Hunan Mendale Hometextile | Hubei Geoway vs. Industrial Bank Co |
| Anhui Jinhe vs. Guilin Seamild Foods | Anhui Jinhe vs. Ligao Foods CoLtd | Anhui Jinhe vs. Gan Yuan Foods | Anhui Jinhe vs. Anhui Jianghuai Automobile |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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