Correlation Between Yunnan Jianzhijia and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Hubei Forbon Technology, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Hubei Forbon.
Diversification Opportunities for Yunnan Jianzhijia and Hubei Forbon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Hubei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Hubei Forbon go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Hubei Forbon
Assuming the 90 days trading horizon Yunnan Jianzhijia is expected to generate 4.36 times less return on investment than Hubei Forbon. But when comparing it to its historical volatility, Yunnan Jianzhijia Health Chain is 1.0 times less risky than Hubei Forbon. It trades about 0.05 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Hubei Forbon Technology on September 4, 2024 and sell it today you would earn a total of 151.00 from holding Hubei Forbon Technology or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Hubei Forbon Technology
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Hubei Forbon Technology |
Yunnan Jianzhijia and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Hubei Forbon
The main advantage of trading using opposite Yunnan Jianzhijia and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Cambricon Technologies Corp | Yunnan Jianzhijia vs. Loongson Technology Corp | Yunnan Jianzhijia vs. Shenzhen Fortune Trend | Yunnan Jianzhijia vs. Chongqing Road Bridge |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |