Correlation Between Hubei Geoway and Shandong Sanyuan
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By analyzing existing cross correlation between Hubei Geoway Investment and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Hubei Geoway and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shandong Sanyuan.
Diversification Opportunities for Hubei Geoway and Shandong Sanyuan
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hubei and Shandong is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shandong Sanyuan
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.81 times more return on investment than Shandong Sanyuan. However, Hubei Geoway is 1.81 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.1 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 139.00 in Hubei Geoway Investment on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Hubei Geoway Investment or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shandong Sanyuan Bio |
Hubei Geoway and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shandong Sanyuan
The main advantage of trading using opposite Hubei Geoway and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Hubei Geoway vs. Qingdao Choho Industrial | Hubei Geoway vs. Jiangsu Jinling Sports | Hubei Geoway vs. Western Metal Materials | Hubei Geoway vs. China Sports Industry |
| Shandong Sanyuan vs. Jointo Energy Investment | Shandong Sanyuan vs. Hubei Geoway Investment | Shandong Sanyuan vs. Henan Shuanghui Investment | Shandong Sanyuan vs. Cultural Investment Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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