Correlation Between Hubei Geoway and Shengtak New
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By analyzing existing cross correlation between Hubei Geoway Investment and Shengtak New Material, you can compare the effects of market volatilities on Hubei Geoway and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shengtak New.
Diversification Opportunities for Hubei Geoway and Shengtak New
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hubei and Shengtak is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shengtak New go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shengtak New
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Shengtak New. In addition to that, Hubei Geoway is 2.0 times more volatile than Shengtak New Material. It trades about -0.41 of its total potential returns per unit of risk. Shengtak New Material is currently generating about 0.07 per unit of volatility. If you would invest 3,157 in Shengtak New Material on October 18, 2024 and sell it today you would earn a total of 76.00 from holding Shengtak New Material or generate 2.41% 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. Shengtak New Material
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shengtak New Material |
Hubei Geoway and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shengtak New
The main advantage of trading using opposite Hubei Geoway and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Hubei Geoway vs. Lootom Telcovideo Network | Hubei Geoway vs. China Asset Management | Hubei Geoway vs. Postal Savings Bank | Hubei Geoway vs. Anhui Jianghuai Automobile |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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