Correlation Between Tianshui Huatian and GRG Banking
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By analyzing existing cross correlation between Tianshui Huatian Technology and GRG Banking Equipment, you can compare the effects of market volatilities on Tianshui Huatian and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and GRG Banking.
Diversification Opportunities for Tianshui Huatian and GRG Banking
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshui and GRG is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and GRG Banking go up and down completely randomly.
Pair Corralation between Tianshui Huatian and GRG Banking
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.13 times more return on investment than GRG Banking. However, Tianshui Huatian is 1.13 times more volatile than GRG Banking Equipment. It trades about 0.23 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.13 per unit of risk. If you would invest 1,055 in Tianshui Huatian Technology on November 7, 2024 and sell it today you would earn a total of 71.00 from holding Tianshui Huatian Technology or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. GRG Banking Equipment
Performance |
| Timeline |
| Tianshui Huatian Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GRG Banking Equipment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tianshui Huatian and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and GRG Banking
The main advantage of trading using opposite Tianshui Huatian and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.The idea behind Tianshui Huatian Technology and GRG Banking Equipment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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