Correlation Between Hubei Geoway and Shanghai CEO
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By analyzing existing cross correlation between Hubei Geoway Investment and Shanghai CEO Environmental, you can compare the effects of market volatilities on Hubei Geoway and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Shanghai CEO.
Diversification Opportunities for Hubei Geoway and Shanghai CEO
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubei and Shanghai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Shanghai CEO go up and down completely randomly.
Pair Corralation between Hubei Geoway and Shanghai CEO
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Shanghai CEO. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 17.79 times less risky than Shanghai CEO. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,133 in Shanghai CEO Environmental on August 31, 2024 and sell it today you would lose (1,132) from holding Shanghai CEO Environmental or give up 53.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Hubei Geoway Investment |
| Shanghai CEO Environ |
Hubei Geoway and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Shanghai CEO
The main advantage of trading using opposite Hubei Geoway and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Hubei Geoway vs. Bomin Electronics Co | Hubei Geoway vs. Leaguer Shenzhen MicroElectronics | Hubei Geoway vs. Sunwave Communications Co | Hubei Geoway vs. Shandong Longquan Pipeline |
| Shanghai CEO vs. Cultural Investment Holdings | Shanghai CEO vs. Gome Telecom Equipment | Shanghai CEO vs. Bus Online Co | Shanghai CEO vs. Holitech Technology Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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