Correlation Between Suzhou Weizhixiang and Hubei Forbon
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Hubei Forbon Technology, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Hubei Forbon.
Diversification Opportunities for Suzhou Weizhixiang and Hubei Forbon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Hubei is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Hubei Forbon go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Hubei Forbon
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Hubei Forbon. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.09 times less risky than Hubei Forbon. The stock trades about -0.06 of its potential returns per unit of risk. The Hubei Forbon Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 774.00 in Hubei Forbon Technology on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Hubei Forbon Technology or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Hubei Forbon Technology
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Hubei Forbon Technology |
Suzhou Weizhixiang and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Hubei Forbon
The main advantage of trading using opposite Suzhou Weizhixiang and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Super Dragon Engineering Plastics | Suzhou Weizhixiang vs. GRIPM Advanced Materials | Suzhou Weizhixiang vs. Sanxiang Advanced Materials | Suzhou Weizhixiang vs. Nuode Investment Co |
| Hubei Forbon vs. Spring Airlines Co | Hubei Forbon vs. Xiandai Investment Co | Hubei Forbon vs. GRIPM Advanced Materials | Hubei Forbon vs. Beijing Mainstreets Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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