Correlation Between Tianshui Huatian and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianshui Huatian Technology and CITIC Guoan Information, you can compare the effects of market volatilities on Tianshui Huatian and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and CITIC Guoan.
Diversification Opportunities for Tianshui Huatian and CITIC Guoan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and CITIC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and CITIC Guoan go up and down completely randomly.
Pair Corralation between Tianshui Huatian and CITIC Guoan
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.0 times more return on investment than CITIC Guoan. However, Tianshui Huatian Technology is 1.0 times less risky than CITIC Guoan. It trades about 0.03 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of risk. If you would invest 886.00 in Tianshui Huatian Technology on October 11, 2024 and sell it today you would earn a total of 192.00 from holding Tianshui Huatian Technology or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. CITIC Guoan Information
Performance |
| Timeline |
| Tianshui Huatian Tec |
| CITIC Guoan Information |
Tianshui Huatian and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and CITIC Guoan
The main advantage of trading using opposite Tianshui Huatian and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Tianshui Huatian vs. Jiangsu Yanghe Brewery | Tianshui Huatian vs. Guangdong Xiongsu Technology | Tianshui Huatian vs. Sinofibers Technology Co | Tianshui Huatian vs. Olympic Circuit Technology |
| CITIC Guoan vs. Tianshui Huatian Technology | CITIC Guoan vs. XiaMen HongXin Electron tech | CITIC Guoan vs. Dhc Software Co | CITIC Guoan vs. Sinofibers Technology Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |