Correlation Between Hubei Geoway and Yankershop Food
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By analyzing existing cross correlation between Hubei Geoway Investment and Yankershop Food Co, you can compare the effects of market volatilities on Hubei Geoway and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Yankershop Food.
Diversification Opportunities for Hubei Geoway and Yankershop Food
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubei and Yankershop is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Yankershop Food go up and down completely randomly.
Pair Corralation between Hubei Geoway and Yankershop Food
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.38 times more return on investment than Yankershop Food. However, Hubei Geoway is 1.38 times more volatile than Yankershop Food Co. It trades about 0.17 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.07 per unit of risk. If you would invest 134.00 in Hubei Geoway Investment on August 24, 2024 and sell it today you would earn a total of 17.00 from holding Hubei Geoway Investment or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Yankershop Food Co
Performance |
| Timeline |
| Hubei Geoway Investment |
| Yankershop Food |
Hubei Geoway and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Yankershop Food
The main advantage of trading using opposite Hubei Geoway and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Yankershop Food vs. Shenzhen Glory Medical | Yankershop Food vs. Touchstone International Medical | Yankershop Food vs. Haima Automobile Group | Yankershop Food vs. Blue Sail Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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