Correlation Between Hubei Yingtong and Fujian Longzhou
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Hubei Yingtong and Fujian Longzhou 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 Hubei Yingtong with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Fujian Longzhou.
Diversification Opportunities for Hubei Yingtong and Fujian Longzhou
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Fujian is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Hubei Yingtong 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 Hubei Yingtong Telecommunication are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Fujian Longzhou
Assuming the 90 days trading horizon Hubei Yingtong is expected to generate 1.26 times less return on investment than Fujian Longzhou. But when comparing it to its historical volatility, Hubei Yingtong Telecommunication is 1.44 times less risky than Fujian Longzhou. It trades about 0.14 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Fujian Longzhou Transportation on September 3, 2025 and sell it today you would earn a total of 126.00 from holding Fujian Longzhou Transportation or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Fujian Longzhou Tran |
Hubei Yingtong and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Fujian Longzhou
The main advantage of trading using opposite Hubei Yingtong and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Hubei Yingtong vs. Shenyu Communication Technology | Hubei Yingtong vs. CITIC Metal Co | Hubei Yingtong vs. Tongling Nonferrous Metals | Hubei Yingtong vs. Shaanxi Meineng Clean |
| Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. China Construction Bank | Fujian Longzhou vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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