Correlation Between Hubei Geoway and Xiamen CD
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By analyzing existing cross correlation between Hubei Geoway Investment and Xiamen CD, you can compare the effects of market volatilities on Hubei Geoway and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Xiamen CD.
Diversification Opportunities for Hubei Geoway and Xiamen CD
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Xiamen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Xiamen CD go up and down completely randomly.
Pair Corralation between Hubei Geoway and Xiamen CD
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.38 times more return on investment than Xiamen CD. However, Hubei Geoway is 1.38 times more volatile than Xiamen CD. It trades about -0.01 of its potential returns per unit of risk. Xiamen CD is currently generating about -0.01 per unit of risk. If you would invest 206.00 in Hubei Geoway Investment on October 16, 2024 and sell it today you would lose (56.00) from holding Hubei Geoway Investment or give up 27.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Xiamen CD
Performance |
| Timeline |
| Hubei Geoway Investment |
| Xiamen CD |
Hubei Geoway and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Xiamen CD
The main advantage of trading using opposite Hubei Geoway and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD'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 |
| Xiamen CD vs. Shandong Longquan Pipeline | Xiamen CD vs. Songz Automobile Air | Xiamen CD vs. Iat Automobile Technology | Xiamen CD vs. Guangzhou Ruoyuchen Information |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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