Correlation Between Hubei Geoway and DO Home
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By analyzing existing cross correlation between Hubei Geoway Investment and DO Home Collection, you can compare the effects of market volatilities on Hubei Geoway and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and DO Home.
Diversification Opportunities for Hubei Geoway and DO Home
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and 002798 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and DO Home go up and down completely randomly.
Pair Corralation between Hubei Geoway and DO Home
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 0.8 times more return on investment than DO Home. However, Hubei Geoway Investment is 1.25 times less risky than DO Home. It trades about -0.02 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.04 per unit of risk. If you would invest 155.00 in Hubei Geoway Investment on October 16, 2024 and sell it today you would lose (8.00) from holding Hubei Geoway Investment or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Hubei Geoway Investment vs. DO Home Collection
Performance |
| Timeline |
| Hubei Geoway Investment |
| DO Home Collection |
Hubei Geoway and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and DO Home
The main advantage of trading using opposite Hubei Geoway and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Hubei Geoway vs. Quectel Wireless Solutions | Hubei Geoway vs. Sichuan Fulin Transportation | Hubei Geoway vs. Songz Automobile Air | Hubei Geoway vs. Silkroad Visual Technology |
| DO Home vs. Cultural Investment Holdings | DO Home vs. Yindu Kitchen Equipment | DO Home vs. Juneyao Airlines | DO Home 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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