Correlation Between Hubei Geoway and Guotai Epoint
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By analyzing existing cross correlation between Hubei Geoway Investment and Guotai Epoint Software, you can compare the effects of market volatilities on Hubei Geoway and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Guotai Epoint.
Diversification Opportunities for Hubei Geoway and Guotai Epoint
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Guotai is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Guotai Epoint go up and down completely randomly.
Pair Corralation between Hubei Geoway and Guotai Epoint
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 1.19 times less return on investment than Guotai Epoint. But when comparing it to its historical volatility, Hubei Geoway Investment is 1.38 times less risky than Guotai Epoint. It trades about 0.07 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,011 in Guotai Epoint Software on October 13, 2024 and sell it today you would earn a total of 596.00 from holding Guotai Epoint Software or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Guotai Epoint Software
Performance |
| Timeline |
| Hubei Geoway Investment |
| Guotai Epoint Software |
Hubei Geoway and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Guotai Epoint
The main advantage of trading using opposite Hubei Geoway and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Hubei Geoway vs. Jiangsu Broadcasting Cable | Hubei Geoway vs. Chongqing Road Bridge | Hubei Geoway vs. Shandong Polymer Biochemicals | Hubei Geoway vs. Heilongjiang Transport Development |
| Guotai Epoint vs. Yingde Greatchem Chemicals | Guotai Epoint vs. Bus Online Co | Guotai Epoint vs. Dymatic Chemicals | Guotai Epoint vs. Porton Fine Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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