Correlation Between Jiangsu Yueda and Hubei Geoway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yueda Investment and Hubei Geoway Investment, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Hubei Geoway.
Diversification Opportunities for Jiangsu Yueda and Hubei Geoway
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Hubei is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment 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 Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Hubei Geoway go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Hubei Geoway
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 2.53 times less return on investment than Hubei Geoway. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.4 times less risky than Hubei Geoway. It trades about 0.06 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Hubei Geoway Investment on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Hubei Geoway Investment or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Hubei Geoway Investment
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Hubei Geoway Investment |
Jiangsu Yueda and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Hubei Geoway
The main advantage of trading using opposite Jiangsu Yueda and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
| Hubei Geoway vs. Qingdao Choho Industrial | Hubei Geoway vs. Jiangsu Jinling Sports | Hubei Geoway vs. Western Metal Materials | Hubei Geoway vs. China Sports Industry |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |