Correlation Between Hubei Geoway and Chahua Modern
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By analyzing existing cross correlation between Hubei Geoway Investment and Chahua Modern Housewares, you can compare the effects of market volatilities on Hubei Geoway and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Chahua Modern.
Diversification Opportunities for Hubei Geoway and Chahua Modern
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Chahua is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Chahua Modern go up and down completely randomly.
Pair Corralation between Hubei Geoway and Chahua Modern
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.23 times less risky than Chahua Modern. The stock trades about -0.01 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Chahua Modern Housewares on October 18, 2024 and sell it today you would earn a total of 1,292 from holding Chahua Modern Housewares or generate 157.75% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Hubei Geoway Investment |
| Chahua Modern Housewares |
Hubei Geoway and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Chahua Modern
The main advantage of trading using opposite Hubei Geoway and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Zhejiang Yongjin Metal | Chahua Modern vs. Rising Nonferrous Metals | Chahua Modern vs. Xinjiang Communications Construction | Chahua Modern vs. Eastern Communications Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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