Correlation Between OBiO Technology and Hubei Forbon
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By analyzing existing cross correlation between OBiO Technology Corp and Hubei Forbon Technology, you can compare the effects of market volatilities on OBiO Technology 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 OBiO Technology with a short position of Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBiO Technology and Hubei Forbon.
Diversification Opportunities for OBiO Technology and Hubei Forbon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OBiO and Hubei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OBiO Technology Corp 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 OBiO Technology 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 OBiO Technology Corp 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 OBiO Technology i.e., OBiO Technology and Hubei Forbon go up and down completely randomly.
Pair Corralation between OBiO Technology and Hubei Forbon
Assuming the 90 days trading horizon OBiO Technology Corp is expected to under-perform the Hubei Forbon. In addition to that, OBiO Technology is 1.27 times more volatile than Hubei Forbon Technology. It trades about -0.05 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.04 per unit of volatility. If you would invest 677.00 in Hubei Forbon Technology on September 3, 2024 and sell it today you would earn a total of 226.00 from holding Hubei Forbon Technology or generate 33.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBiO Technology Corp vs. Hubei Forbon Technology
Performance |
| Timeline |
| OBiO Technology Corp |
| Hubei Forbon Technology |
OBiO Technology and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBiO Technology and Hubei Forbon
The main advantage of trading using opposite OBiO Technology and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBiO Technology 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.| OBiO Technology vs. Gan Yuan Foods | OBiO Technology vs. Jiahe Foods Industry | OBiO Technology vs. JuneYao Dairy Co | OBiO Technology vs. Tongyu Communication |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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