Correlation Between Hubei Geoway and Guangdong Skychem
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By analyzing existing cross correlation between Hubei Geoway Investment and Guangdong Skychem Technology, you can compare the effects of market volatilities on Hubei Geoway and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Guangdong Skychem.
Diversification Opportunities for Hubei Geoway and Guangdong Skychem
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Guangdong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Hubei Geoway and Guangdong Skychem
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Guangdong Skychem. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.58 times less risky than Guangdong Skychem. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Skychem Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,452 in Guangdong Skychem Technology on October 16, 2024 and sell it today you would earn a total of 2,568 from holding Guangdong Skychem Technology or generate 47.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.62% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Hubei Geoway Investment |
| Guangdong Skychem |
Hubei Geoway and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Guangdong Skychem
The main advantage of trading using opposite Hubei Geoway and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Hubei Geoway vs. Tongxing Environmental Protection | Hubei Geoway vs. Penyao Environmental Protection | Hubei Geoway vs. Shuhua Sports Co | Hubei Geoway vs. Beijing Jiaman Dress |
| Guangdong Skychem vs. Kunwu Jiuding Investment | Guangdong Skychem vs. Xiandai Investment Co | Guangdong Skychem vs. Hubei Geoway Investment | Guangdong Skychem vs. Henan Shuanghui Investment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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