Correlation Between Tianshui Huatian and Shengda Mining
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shengda Mining Co, you can compare the effects of market volatilities on Tianshui Huatian and Shengda Mining 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 Tianshui Huatian with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shengda Mining.
Diversification Opportunities for Tianshui Huatian and Shengda Mining
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Shengda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Tianshui Huatian 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 Tianshui Huatian Technology are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Shengda Mining go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shengda Mining
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.69 times more return on investment than Shengda Mining. However, Tianshui Huatian is 1.69 times more volatile than Shengda Mining Co. It trades about -0.08 of its potential returns per unit of risk. Shengda Mining Co is currently generating about -0.29 per unit of risk. If you would invest 1,260 in Tianshui Huatian Technology on September 3, 2024 and sell it today you would lose (76.00) from holding Tianshui Huatian Technology or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Shengda Mining Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shengda Mining |
Tianshui Huatian and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shengda Mining
The main advantage of trading using opposite Tianshui Huatian and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Construction Bank | Tianshui Huatian vs. Postal Savings Bank | Tianshui Huatian vs. Bank of Communications |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co | Shengda Mining vs. Hoshine Silicon Ind |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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