Correlation Between Chengdu B and Hubei Yingtong
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By analyzing existing cross correlation between Chengdu B ray Media and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Chengdu B and Hubei Yingtong 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 Chengdu B with a short position of Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Hubei Yingtong.
Diversification Opportunities for Chengdu B and Hubei Yingtong
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Hubei is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Chengdu B i.e., Chengdu B and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Chengdu B and Hubei Yingtong
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu B ray Media is 1.41 times less risky than Hubei Yingtong. The stock trades about -0.03 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Hubei Yingtong Telecommunication on October 30, 2024 and sell it today you would earn a total of 467.00 from holding Hubei Yingtong Telecommunication or generate 39.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Chengdu B ray |
| Hubei Yingtong Telec |
Chengdu B and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Hubei Yingtong
The main advantage of trading using opposite Chengdu B and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Hubei Yingtong 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 Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Chengdu B vs. Silkroad Visual Technology | Chengdu B vs. Guangzhou Tinci Materials | Chengdu B vs. Swancor Advanced Materials | Chengdu B vs. Shanghai Broadband Technology |
| Hubei Yingtong vs. Bus Online Co | Hubei Yingtong vs. Holitech Technology Co | Hubei Yingtong vs. Gome Telecom Equipment | Hubei Yingtong vs. Cultural Investment Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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