Correlation Between Hubei Geoway and Jiangsu Yueda
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By analyzing existing cross correlation between Hubei Geoway Investment and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Hubei Geoway and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Jiangsu Yueda.
Diversification Opportunities for Hubei Geoway and Jiangsu Yueda
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Jiangsu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Hubei Geoway and Jiangsu Yueda
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.4 times more return on investment than Jiangsu Yueda. However, Hubei Geoway is 1.4 times more volatile than Jiangsu Yueda Investment. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Hubei Geoway Investment |
| Jiangsu Yueda Investment |
Hubei Geoway and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Jiangsu Yueda
The main advantage of trading using opposite Hubei Geoway and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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