Correlation Between Zhongtong Guomai and Hubei Yingtong
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Hubei Yingtong.
Diversification Opportunities for Zhongtong Guomai and Hubei Yingtong
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongtong and Hubei is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Hubei Yingtong
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Zhongtong Guomai Communication is 1.19 times less risky than Hubei Yingtong. The stock trades about -0.31 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,247 in Hubei Yingtong Telecommunication on September 18, 2024 and sell it today you would earn a total of 144.00 from holding Hubei Yingtong Telecommunication or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Hubei Yingtong Telec |
Zhongtong Guomai and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Hubei Yingtong
The main advantage of trading using opposite Zhongtong Guomai and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
| Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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