Correlation Between Hubei Geoway and Fujian Nanwang
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By analyzing existing cross correlation between Hubei Geoway Investment and Fujian Nanwang Environment, you can compare the effects of market volatilities on Hubei Geoway and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Fujian Nanwang.
Diversification Opportunities for Hubei Geoway and Fujian Nanwang
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Fujian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Hubei Geoway and Fujian Nanwang
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Fujian Nanwang. In addition to that, Hubei Geoway is 2.32 times more volatile than Fujian Nanwang Environment. It trades about -0.14 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.28 per unit of volatility. If you would invest 1,279 in Fujian Nanwang Environment on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Fujian Nanwang Environment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Hubei Geoway Investment |
| Fujian Nanwang Envir |
Hubei Geoway and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Fujian Nanwang
The main advantage of trading using opposite Hubei Geoway and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Hubei Geoway vs. Jiangsu Broadcasting Cable | Hubei Geoway vs. Guangzhou Tinci Materials | Hubei Geoway vs. Hangzhou Gaoxin Rubber | Hubei Geoway vs. Anshan Senyuan Road |
| Fujian Nanwang vs. Jinxiandai Information Industry | Fujian Nanwang vs. Leyard Optoelectronic | Fujian Nanwang vs. Success Electronics | Fujian Nanwang vs. Jinlong Machinery Electronic |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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