Correlation Between Tianshui Huatian and Shenzhen MYS
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Tianshui Huatian and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shenzhen MYS.
Diversification Opportunities for Tianshui Huatian and Shenzhen MYS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shenzhen MYS
Assuming the 90 days trading horizon Tianshui Huatian is expected to generate 1.64 times less return on investment than Shenzhen MYS. In addition to that, Tianshui Huatian is 1.65 times more volatile than Shenzhen MYS Environmental. It trades about 0.1 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.26 per unit of volatility. If you would invest 319.00 in Shenzhen MYS Environmental on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Shenzhen MYS Environmental or generate 17.55% 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. Shenzhen MYS Environmental
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shenzhen MYS Environ |
Tianshui Huatian and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shenzhen MYS
The main advantage of trading using opposite Tianshui Huatian and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Tianshui Huatian vs. Harbin Hatou Investment | Tianshui Huatian vs. BTG Hotels Group | Tianshui Huatian vs. Hubei Geoway Investment | Tianshui Huatian vs. Huatian Hotel Group |
| Shenzhen MYS vs. PKU HealthCare Corp | Shenzhen MYS vs. Eastroc Beverage Group | Shenzhen MYS vs. Youngy Health Co | Shenzhen MYS vs. Tongxing Environmental Protection |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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