Correlation Between Hubei Geoway and Beijing Roborock
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By analyzing existing cross correlation between Hubei Geoway Investment and Beijing Roborock Technology, you can compare the effects of market volatilities on Hubei Geoway and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Beijing Roborock.
Diversification Opportunities for Hubei Geoway and Beijing Roborock
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Beijing is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Beijing Roborock go up and down completely randomly.
Pair Corralation between Hubei Geoway and Beijing Roborock
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Beijing Roborock. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.26 times less risky than Beijing Roborock. The stock trades about -0.05 of its potential returns per unit of risk. The Beijing Roborock Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 27,194 in Beijing Roborock Technology on September 2, 2024 and sell it today you would lose (5,744) from holding Beijing Roborock Technology or give up 21.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Beijing Roborock Technology
Performance |
| Timeline |
| Hubei Geoway Investment |
| Beijing Roborock Tec |
Hubei Geoway and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Beijing Roborock
The main advantage of trading using opposite Hubei Geoway and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock'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 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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