Correlation Between Cinda Securities and Hubeiyichang Transportation
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By analyzing existing cross correlation between Cinda Securities Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Cinda Securities and Hubeiyichang Transportation 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 Cinda Securities with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Hubeiyichang Transportation.
Diversification Opportunities for Cinda Securities and Hubeiyichang Transportation
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Hubeiyichang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Cinda Securities i.e., Cinda Securities and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Cinda Securities and Hubeiyichang Transportation
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Hubeiyichang Transportation. In addition to that, Cinda Securities is 1.09 times more volatile than Hubeiyichang Transportation Group. It trades about -0.07 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.05 per unit of volatility. If you would invest 524.00 in Hubeiyichang Transportation Group on October 26, 2024 and sell it today you would lose (23.00) from holding Hubeiyichang Transportation Group or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Cinda Securities |
| Hubeiyichang Transportation |
Cinda Securities and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Hubeiyichang Transportation
The main advantage of trading using opposite Cinda Securities and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Cinda Securities vs. Masterwork Machinery | Cinda Securities vs. Shuhua Sports Co | Cinda Securities vs. Anhui Huilong Agricultural | Cinda Securities vs. Ningbo Construction Co |
| Hubeiyichang Transportation vs. China Life Insurance | Hubeiyichang Transportation vs. Cinda Securities Co | Hubeiyichang Transportation vs. Piotech Inc A | Hubeiyichang Transportation vs. Dongxing Sec Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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