Correlation Between Datang HuaYin and Hubei Geoway
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By analyzing existing cross correlation between Datang HuaYin Electric and Hubei Geoway Investment, you can compare the effects of market volatilities on Datang HuaYin and Hubei Geoway 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 Datang HuaYin with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Hubei Geoway.
Diversification Opportunities for Datang HuaYin and Hubei Geoway
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Datang and Hubei is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment and Datang HuaYin 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 Datang HuaYin Electric are associated (or correlated) with Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Datang HuaYin i.e., Datang HuaYin and Hubei Geoway go up and down completely randomly.
Pair Corralation between Datang HuaYin and Hubei Geoway
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the Hubei Geoway. But the stock apears to be less risky and, when comparing its historical volatility, Datang HuaYin Electric is 1.05 times less risky than Hubei Geoway. The stock trades about -0.01 of its potential returns per unit of risk. The Hubei Geoway Investment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Hubei Geoway Investment on September 21, 2024 and sell it today you would lose (21.00) from holding Hubei Geoway Investment or give up 10.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Hubei Geoway Investment
Performance |
| Timeline |
| Datang HuaYin Electric |
| Hubei Geoway Investment |
Datang HuaYin and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Hubei Geoway
The main advantage of trading using opposite Datang HuaYin and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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