Correlation Between GRIPM Advanced and Hubeiyichang Transportation
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By analyzing existing cross correlation between GRIPM Advanced Materials and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on GRIPM Advanced and Hubeiyichang Transportation 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 GRIPM Advanced with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Hubeiyichang Transportation.
Diversification Opportunities for GRIPM Advanced and Hubeiyichang Transportation
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRIPM and Hubeiyichang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Hubeiyichang Transportation
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.9 times more return on investment than Hubeiyichang Transportation. However, GRIPM Advanced is 1.9 times more volatile than Hubeiyichang Transportation Group. It trades about 0.02 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 3,169 in GRIPM Advanced Materials on August 31, 2024 and sell it today you would lose (58.00) from holding GRIPM Advanced Materials or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Hubeiyichang Transportation |
GRIPM Advanced and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Hubeiyichang Transportation
The main advantage of trading using opposite GRIPM Advanced and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| GRIPM Advanced vs. Zhejiang Construction Investment | GRIPM Advanced vs. TongFu Microelectronics Co | GRIPM Advanced vs. Postal Savings Bank | GRIPM Advanced vs. Leyard Optoelectronic |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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