Correlation Between Guotai Epoint and Hubei Geoway
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By analyzing existing cross correlation between Guotai Epoint Software and Hubei Geoway Investment, you can compare the effects of market volatilities on Guotai Epoint and Hubei Geoway 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 Guotai Epoint with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Hubei Geoway.
Diversification Opportunities for Guotai Epoint and Hubei Geoway
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guotai and Hubei is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment and Guotai Epoint 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 Guotai Epoint Software are associated (or correlated) with Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Hubei Geoway go up and down completely randomly.
Pair Corralation between Guotai Epoint and Hubei Geoway
Assuming the 90 days trading horizon Guotai Epoint Software is expected to generate 1.38 times more return on investment than Hubei Geoway. However, Guotai Epoint is 1.38 times more volatile than Hubei Geoway Investment. It trades about 0.06 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.07 per unit of risk. If you would invest 2,011 in Guotai Epoint Software on October 13, 2024 and sell it today you would earn a total of 596.00 from holding Guotai Epoint Software or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Hubei Geoway Investment
Performance |
| Timeline |
| Guotai Epoint Software |
| Hubei Geoway Investment |
Guotai Epoint and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Hubei Geoway
The main advantage of trading using opposite Guotai Epoint and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Hubei Geoway 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 Geoway will offset losses from the drop in Hubei Geoway's long position.| Guotai Epoint vs. Yingde Greatchem Chemicals | Guotai Epoint vs. Bus Online Co | Guotai Epoint vs. Dymatic Chemicals | Guotai Epoint vs. Porton Fine Chemicals |
| Hubei Geoway vs. Jiangsu Broadcasting Cable | Hubei Geoway vs. Chongqing Road Bridge | Hubei Geoway vs. Shandong Polymer Biochemicals | Hubei Geoway vs. Heilongjiang Transport Development |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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