Correlation Between Tianshui Huatian and Kingnet Network
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By analyzing existing cross correlation between Tianshui Huatian Technology and Kingnet Network Co, you can compare the effects of market volatilities on Tianshui Huatian and Kingnet Network 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 Kingnet Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Kingnet Network.
Diversification Opportunities for Tianshui Huatian and Kingnet Network
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Kingnet is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Kingnet Network Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingnet Network 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 Kingnet Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingnet Network has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Kingnet Network go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Kingnet Network
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.94 times more return on investment than Kingnet Network. However, Tianshui Huatian Technology is 1.06 times less risky than Kingnet Network. It trades about 0.06 of its potential returns per unit of risk. Kingnet Network Co is currently generating about 0.03 per unit of risk. If you would invest 870.00 in Tianshui Huatian Technology on September 4, 2024 and sell it today you would earn a total of 332.00 from holding Tianshui Huatian Technology or generate 38.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Kingnet Network Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Kingnet Network |
Tianshui Huatian and Kingnet Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Kingnet Network
The main advantage of trading using opposite Tianshui Huatian and Kingnet Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Kingnet Network 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 Kingnet Network will offset losses from the drop in Kingnet Network's long position.| Tianshui Huatian vs. Jilin Chemical Fibre | Tianshui Huatian vs. Kontour Medical Technology | Tianshui Huatian vs. Dymatic Chemicals | Tianshui Huatian vs. Cowealth Medical China |
| Kingnet Network vs. Tianshui Huatian Technology | Kingnet Network vs. Anhui Liuguo Chemical | Kingnet Network vs. Jinhe Biotechnology Co | Kingnet Network vs. Changchun UP Optotech |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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