Correlation Between Heilongjiang Publishing and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Publishing Media and Hubei Forbon Technology, you can compare the effects of market volatilities on Heilongjiang Publishing 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 Heilongjiang Publishing with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Hubei Forbon.
Diversification Opportunities for Heilongjiang Publishing and Hubei Forbon
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Hubei is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media 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 Heilongjiang Publishing 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 Heilongjiang Publishing Media 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 Heilongjiang Publishing i.e., Heilongjiang Publishing and Hubei Forbon go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Hubei Forbon
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Hubei Forbon. In addition to that, Heilongjiang Publishing is 1.11 times more volatile than Hubei Forbon Technology. It trades about -0.13 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about -0.06 per unit of volatility. If you would invest 903.00 in Hubei Forbon Technology on October 30, 2024 and sell it today you would lose (73.00) from holding Hubei Forbon Technology or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Hubei Forbon Technology
Performance |
| Timeline |
| Heilongjiang Publishing |
| Hubei Forbon Technology |
Heilongjiang Publishing and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Hubei Forbon
The main advantage of trading using opposite Heilongjiang Publishing and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing 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.The idea behind Heilongjiang Publishing Media and Hubei Forbon Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hubei Forbon vs. Maoming Petro Chemical Shihua | Hubei Forbon vs. Guocheng Mining Co | Hubei Forbon vs. Ningbo Jintian Copper | Hubei Forbon vs. Rising Nonferrous Metals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |