Correlation Between Hubei Geoway and Zhejiang HISUN
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By analyzing existing cross correlation between Hubei Geoway Investment and Zhejiang HISUN Biomaterials, you can compare the effects of market volatilities on Hubei Geoway and Zhejiang HISUN 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 Zhejiang HISUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Zhejiang HISUN.
Diversification Opportunities for Hubei Geoway and Zhejiang HISUN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Zhejiang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Zhejiang HISUN Biomaterials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang HISUN Bioma 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 Zhejiang HISUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang HISUN Bioma has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Zhejiang HISUN go up and down completely randomly.
Pair Corralation between Hubei Geoway and Zhejiang HISUN
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Zhejiang HISUN. In addition to that, Hubei Geoway is 1.08 times more volatile than Zhejiang HISUN Biomaterials. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang HISUN Biomaterials is currently generating about -0.01 per unit of volatility. If you would invest 1,280 in Zhejiang HISUN Biomaterials on September 14, 2024 and sell it today you would lose (186.00) from holding Zhejiang HISUN Biomaterials or give up 14.53% 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. Zhejiang HISUN Biomaterials
Performance |
| Timeline |
| Hubei Geoway Investment |
| Zhejiang HISUN Bioma |
Hubei Geoway and Zhejiang HISUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Zhejiang HISUN
The main advantage of trading using opposite Hubei Geoway and Zhejiang HISUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Zhejiang HISUN 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 Zhejiang HISUN will offset losses from the drop in Zhejiang HISUN'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 |
| Zhejiang HISUN vs. Lander Sports Development | Zhejiang HISUN vs. Hua Xia Bank | Zhejiang HISUN vs. China World Trade | Zhejiang HISUN vs. Panda Financial Holding |
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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