Correlation Between Gem Year and Hubei Jumpcan
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By analyzing existing cross correlation between Gem Year Industrial Co and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Gem Year and Hubei Jumpcan 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 Gem Year with a short position of Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Hubei Jumpcan.
Diversification Opportunities for Gem Year and Hubei Jumpcan
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gem and Hubei is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Gem Year i.e., Gem Year and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Gem Year and Hubei Jumpcan
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.87 times more return on investment than Hubei Jumpcan. However, Gem Year Industrial Co is 1.15 times less risky than Hubei Jumpcan. It trades about -0.05 of its potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.06 per unit of risk. If you would invest 476.00 in Gem Year Industrial Co on September 5, 2024 and sell it today you would lose (11.00) from holding Gem Year Industrial Co or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Gem Year Industrial |
| Hubei Jumpcan Pharma |
Gem Year and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Hubei Jumpcan
The main advantage of trading using opposite Gem Year and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Hubei Jumpcan 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 Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Gem Year vs. Ningbo Tip Rubber | Gem Year vs. Shenzhen Centralcon Investment | Gem Year vs. Vanfund Urban Investment | Gem Year vs. Western Metal Materials |
| Hubei Jumpcan vs. Lonkey Industrial Co | Hubei Jumpcan vs. Gem Year Industrial Co | Hubei Jumpcan vs. Longmaster Information Tech | Hubei Jumpcan vs. Dawning Information 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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