Correlation Between Hubei Geoway and Beijing YanDong
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By analyzing existing cross correlation between Hubei Geoway Investment and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Hubei Geoway and Beijing YanDong 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 YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Beijing YanDong.
Diversification Opportunities for Hubei Geoway and Beijing YanDong
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Beijing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Beijing YanDong go up and down completely randomly.
Pair Corralation between Hubei Geoway and Beijing YanDong
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Beijing YanDong. In addition to that, Hubei Geoway is 1.24 times more volatile than Beijing YanDong MicroElectronic. It trades about -0.14 of its total potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about -0.16 per unit of volatility. If you would invest 2,266 in Beijing YanDong MicroElectronic on October 11, 2024 and sell it today you would lose (282.00) from holding Beijing YanDong MicroElectronic or give up 12.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Hubei Geoway Investment |
| Beijing YanDong Micr |
Hubei Geoway and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Beijing YanDong
The main advantage of trading using opposite Hubei Geoway and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Beijing YanDong 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 YanDong will offset losses from the drop in Beijing YanDong's long position.| Hubei Geoway vs. Jiangsu Broadcasting Cable | Hubei Geoway vs. Guangzhou Tinci Materials | Hubei Geoway vs. Hangzhou Gaoxin Rubber | Hubei Geoway vs. Anshan Senyuan Road |
| Beijing YanDong vs. Ping An Insurance | Beijing YanDong vs. China Life Insurance | Beijing YanDong vs. Hubei Geoway Investment | Beijing YanDong vs. Penyao Environmental Protection |
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 CEOs Directory module to screen CEOs from public companies around the world.
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