Correlation Between 360 Security and Hubei Forbon
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By analyzing existing cross correlation between 360 Security Technology and Hubei Forbon Technology, you can compare the effects of market volatilities on 360 Security and Hubei Forbon 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 360 Security with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and Hubei Forbon.
Diversification Opportunities for 360 Security and Hubei Forbon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 360 and Hubei is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology and 360 Security 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 360 Security Technology are associated (or correlated) with Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of 360 Security i.e., 360 Security and Hubei Forbon go up and down completely randomly.
Pair Corralation between 360 Security and Hubei Forbon
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 1.29 times more return on investment than Hubei Forbon. However, 360 Security is 1.29 times more volatile than Hubei Forbon Technology. It trades about 0.06 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.04 per unit of risk. If you would invest 686.00 in 360 Security Technology on September 3, 2024 and sell it today you would earn a total of 654.00 from holding 360 Security Technology or generate 95.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Security Technology vs. Hubei Forbon Technology
Performance |
| Timeline |
| 360 Security Technology |
| Hubei Forbon Technology |
360 Security and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Security and Hubei Forbon
The main advantage of trading using opposite 360 Security and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security position performs unexpectedly, Hubei Forbon 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 Forbon will offset losses from the drop in Hubei Forbon's long position.| 360 Security vs. Agricultural Bank of | 360 Security vs. China Construction Bank | 360 Security vs. Postal Savings Bank | 360 Security vs. Bank of Communications |
| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Rongsheng Petrochemical 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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