Correlation Between Hubei Geoway and Gem Year
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By analyzing existing cross correlation between Hubei Geoway Investment and Gem Year Industrial Co, you can compare the effects of market volatilities on Hubei Geoway and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Gem Year.
Diversification Opportunities for Hubei Geoway and Gem Year
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Gem is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Gem Year go up and down completely randomly.
Pair Corralation between Hubei Geoway and Gem Year
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 16.59 times less return on investment than Gem Year. But when comparing it to its historical volatility, Hubei Geoway Investment is 1.2 times less risky than Gem Year. It trades about 0.02 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Gem Year Industrial Co on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Gem Year Industrial Co or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Gem Year Industrial Co
Performance |
| Timeline |
| Hubei Geoway Investment |
| Gem Year Industrial |
Hubei Geoway and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Gem Year
The main advantage of trading using opposite Hubei Geoway and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Hubei Geoway vs. Sichuan Hebang Biotechnology | Hubei Geoway vs. Shenzhen Bioeasy Biotechnology | Hubei Geoway vs. Yangmei Chemical Co | Hubei Geoway vs. Liuzhou Chemical Industry |
| Gem Year vs. Industrial and Commercial | Gem Year vs. Agricultural Bank of | Gem Year vs. China Construction Bank | Gem Year vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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