Correlation Between Hubei Geoway and Dawning Information
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By analyzing existing cross correlation between Hubei Geoway Investment and Dawning Information Industry, you can compare the effects of market volatilities on Hubei Geoway and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Dawning Information.
Diversification Opportunities for Hubei Geoway and Dawning Information
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Dawning is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Dawning Information go up and down completely randomly.
Pair Corralation between Hubei Geoway and Dawning Information
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 13.2 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Hubei Geoway Investment is 1.25 times less risky than Dawning Information. It trades about 0.03 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 6,699 in Dawning Information Industry on November 27, 2024 and sell it today you would earn a total of 1,030 from holding Dawning Information Industry or generate 15.38% 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. Dawning Information Industry
Performance |
| Timeline |
| Hubei Geoway Investment |
| Dawning Information |
Hubei Geoway and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Dawning Information
The main advantage of trading using opposite Hubei Geoway and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Dawning Information vs. StarPower Semiconductor | Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Cicc Fund Management | Dawning Information vs. Huizhou Speed Wireless |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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