Correlation Between HOB Biotech and Xiamen Hexing
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By analyzing existing cross correlation between HOB Biotech Group and Xiamen Hexing Packaging, you can compare the effects of market volatilities on HOB Biotech and Xiamen Hexing 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 HOB Biotech with a short position of Xiamen Hexing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Xiamen Hexing.
Diversification Opportunities for HOB Biotech and Xiamen Hexing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOB and Xiamen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group and Xiamen Hexing Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Hexing Packaging and HOB Biotech 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 HOB Biotech Group are associated (or correlated) with Xiamen Hexing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Hexing Packaging has no effect on the direction of HOB Biotech i.e., HOB Biotech and Xiamen Hexing go up and down completely randomly.
Pair Corralation between HOB Biotech and Xiamen Hexing
Assuming the 90 days trading horizon HOB Biotech Group is expected to generate 3.14 times more return on investment than Xiamen Hexing. However, HOB Biotech is 3.14 times more volatile than Xiamen Hexing Packaging. It trades about 0.24 of its potential returns per unit of risk. Xiamen Hexing Packaging is currently generating about 0.12 per unit of risk. If you would invest 2,220 in HOB Biotech Group on September 12, 2024 and sell it today you would earn a total of 8,790 from holding HOB Biotech Group or generate 395.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. Xiamen Hexing Packaging
Performance |
| Timeline |
| HOB Biotech Group |
| Xiamen Hexing Packaging |
HOB Biotech and Xiamen Hexing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Xiamen Hexing
The main advantage of trading using opposite HOB Biotech and Xiamen Hexing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech position performs unexpectedly, Xiamen Hexing 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 Xiamen Hexing will offset losses from the drop in Xiamen Hexing's long position.| HOB Biotech vs. Cultural Investment Holdings | HOB Biotech vs. Gome Telecom Equipment | HOB Biotech vs. Holitech Technology Co | HOB Biotech vs. Zotye Automobile Co |
| Xiamen Hexing vs. Linewell Software Co | Xiamen Hexing vs. Iat Automobile Technology | Xiamen Hexing vs. Northking Information Technology | Xiamen Hexing vs. Jiujiang Shanshui Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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