Correlation Between Hubei Geoway and Xiamen Wanli
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Geoway Investment and Xiamen Wanli Stone, you can compare the effects of market volatilities on Hubei Geoway and Xiamen Wanli 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 Xiamen Wanli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Xiamen Wanli.
Diversification Opportunities for Hubei Geoway and Xiamen Wanli
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Xiamen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Xiamen Wanli Stone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Wanli Stone 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 Xiamen Wanli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Wanli Stone has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Xiamen Wanli go up and down completely randomly.
Pair Corralation between Hubei Geoway and Xiamen Wanli
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 0.93 times more return on investment than Xiamen Wanli. However, Hubei Geoway Investment is 1.07 times less risky than Xiamen Wanli. It trades about 0.02 of its potential returns per unit of risk. Xiamen Wanli Stone is currently generating about 0.01 per unit of risk. If you would invest 147.00 in Hubei Geoway Investment on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Hubei Geoway Investment or generate 0.68% 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. Xiamen Wanli Stone
Performance |
| Timeline |
| Hubei Geoway Investment |
| Xiamen Wanli Stone |
Hubei Geoway and Xiamen Wanli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Xiamen Wanli
The main advantage of trading using opposite Hubei Geoway and Xiamen Wanli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Xiamen Wanli 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 Xiamen Wanli will offset losses from the drop in Xiamen Wanli's long position.| Hubei Geoway vs. Ningxia Building Materials | Hubei Geoway vs. Orinko Advanced Plastics | Hubei Geoway vs. Sanxiang Advanced Materials | Hubei Geoway vs. Ningbo Tip Rubber |
| Xiamen Wanli vs. Metro Investment Development | Xiamen Wanli vs. Jiangsu Yueda Investment | Xiamen Wanli vs. Hubei Geoway Investment | Xiamen Wanli vs. Ningbo Fangzheng 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |