Correlation Between Zoy Home and Hubei Forbon
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By analyzing existing cross correlation between Zoy Home Furnishing and Hubei Forbon Technology, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Hubei Forbon.
Diversification Opportunities for Zoy Home and Hubei Forbon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Hubei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing 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 Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and Hubei Forbon go up and down completely randomly.
Pair Corralation between Zoy Home and Hubei Forbon
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Hubei Forbon. In addition to that, Zoy Home is 1.17 times more volatile than Hubei Forbon Technology. It trades about -0.01 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.03 per unit of volatility. If you would invest 704.00 in Hubei Forbon Technology on October 16, 2024 and sell it today you would earn a total of 115.00 from holding Hubei Forbon Technology or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Hubei Forbon Technology
Performance |
| Timeline |
| Zoy Home Furnishing |
| Hubei Forbon Technology |
Zoy Home and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Hubei Forbon
The main advantage of trading using opposite Zoy Home and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.| Zoy Home vs. Shenyang Huitian Thermal | Zoy Home vs. North Copper Shanxi | Zoy Home vs. Shanghai Yanpu Metal | Zoy Home vs. Guangdong Jingyi Metal |
| Hubei Forbon vs. UE Furniture Co | Hubei Forbon vs. Shandong Publishing Media | Hubei Forbon vs. Zoy Home Furnishing | Hubei Forbon vs. Heilongjiang Publishing Media |
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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