Correlation Between Fujian Oriental and Hubei Geoway
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By analyzing existing cross correlation between Fujian Oriental Silver and Hubei Geoway Investment, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Hubei Geoway.
Diversification Opportunities for Fujian Oriental and Hubei Geoway
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and Hubei is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Hubei Geoway go up and down completely randomly.
Pair Corralation between Fujian Oriental and Hubei Geoway
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.29 times more return on investment than Hubei Geoway. However, Fujian Oriental is 1.29 times more volatile than Hubei Geoway Investment. It trades about 0.08 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.1 per unit of risk. If you would invest 569.00 in Fujian Oriental Silver on September 25, 2024 and sell it today you would earn a total of 86.00 from holding Fujian Oriental Silver or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Hubei Geoway Investment
Performance |
| Timeline |
| Fujian Oriental Silver |
| Hubei Geoway Investment |
Fujian Oriental and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Hubei Geoway
The main advantage of trading using opposite Fujian Oriental and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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