Correlation Between Hubei Geoway and Sinosteel Luonai
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By analyzing existing cross correlation between Hubei Geoway Investment and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Hubei Geoway and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Sinosteel Luonai.
Diversification Opportunities for Hubei Geoway and Sinosteel Luonai
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Sinosteel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Hubei Geoway and Sinosteel Luonai
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Sinosteel Luonai. In addition to that, Hubei Geoway is 2.58 times more volatile than Sinosteel Luonai Materials. It trades about -0.22 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.54 per unit of volatility. If you would invest 430.00 in Sinosteel Luonai Materials on October 14, 2024 and sell it today you would lose (72.00) from holding Sinosteel Luonai Materials or give up 16.74% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Hubei Geoway Investment |
| Sinosteel Luonai Mat |
Hubei Geoway and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Sinosteel Luonai
The main advantage of trading using opposite Hubei Geoway and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Hubei Geoway vs. Thinkingdom Media Group | Hubei Geoway vs. Mango Excellent Media | Hubei Geoway vs. Duzhe Publishing Media | Hubei Geoway vs. Northern United Publishing |
| Sinosteel Luonai vs. Jiangsu Yueda Investment | Sinosteel Luonai vs. Hubei Geoway Investment | Sinosteel Luonai vs. StarPower Semiconductor | Sinosteel Luonai vs. Harbin Hatou 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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