Correlation Between Hubei Xingfa and Hawkins
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Hawkins, you can compare the effects of market volatilities on Hubei Xingfa and Hawkins 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 Xingfa with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Hawkins.
Diversification Opportunities for Hubei Xingfa and Hawkins
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hubei and Hawkins is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Hubei Xingfa 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 Xingfa Chemicals are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Hawkins go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Hawkins
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 1.18 times more return on investment than Hawkins. However, Hubei Xingfa is 1.18 times more volatile than Hawkins. It trades about 0.16 of its potential returns per unit of risk. Hawkins is currently generating about -0.53 per unit of risk. If you would invest 3,013 in Hubei Xingfa Chemicals on August 13, 2025 and sell it today you would earn a total of 302.00 from holding Hubei Xingfa Chemicals or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Hawkins
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Hawkins |
Hubei Xingfa and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Hawkins
The main advantage of trading using opposite Hubei Xingfa and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Shandong Gold Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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