Correlation Between Hubei Geoway and China Publishing
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By analyzing existing cross correlation between Hubei Geoway Investment and China Publishing Media, you can compare the effects of market volatilities on Hubei Geoway and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and China Publishing.
Diversification Opportunities for Hubei Geoway and China Publishing
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and China is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and China Publishing go up and down completely randomly.
Pair Corralation between Hubei Geoway and China Publishing
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the China Publishing. In addition to that, Hubei Geoway is 1.74 times more volatile than China Publishing Media. It trades about -0.41 of its total potential returns per unit of risk. China Publishing Media is currently generating about -0.33 per unit of volatility. If you would invest 799.00 in China Publishing Media on October 18, 2024 and sell it today you would lose (112.00) from holding China Publishing Media or give up 14.02% 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. China Publishing Media
Performance |
| Timeline |
| Hubei Geoway Investment |
| China Publishing Media |
Hubei Geoway and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and China Publishing
The main advantage of trading using opposite Hubei Geoway and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Hubei Geoway vs. Lootom Telcovideo Network | Hubei Geoway vs. China Asset Management | Hubei Geoway vs. Postal Savings Bank | Hubei Geoway vs. Anhui Jianghuai Automobile |
| China Publishing vs. Yindu Kitchen Equipment | China Publishing vs. Jiangsu Yueda Investment | China Publishing vs. Hubei Geoway Investment | China Publishing vs. Beijing Mainstreets Investment |
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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