Correlation Between Tianshui Huatian and Xinjiang Beixin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianshui Huatian Technology and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Tianshui Huatian and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Xinjiang Beixin.
Diversification Opportunities for Tianshui Huatian and Xinjiang Beixin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshui and Xinjiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Xinjiang Beixin
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.73 times more return on investment than Xinjiang Beixin. However, Tianshui Huatian Technology is 1.37 times less risky than Xinjiang Beixin. It trades about 0.23 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.05 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. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Tianshui Huatian Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinjiang Beixin Road |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tianshui Huatian and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Xinjiang Beixin
The main advantage of trading using opposite Tianshui Huatian and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.The idea behind Tianshui Huatian Technology and Xinjiang Beixin RoadBridge 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |