Correlation Between Tianshui Huatian and Xiamen Jihong
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By analyzing existing cross correlation between Tianshui Huatian Technology and Xiamen Jihong Package, you can compare the effects of market volatilities on Tianshui Huatian and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Xiamen Jihong.
Diversification Opportunities for Tianshui Huatian and Xiamen Jihong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshui and Xiamen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Xiamen Jihong
Assuming the 90 days trading horizon Tianshui Huatian is expected to generate 1.86 times less return on investment than Xiamen Jihong. But when comparing it to its historical volatility, Tianshui Huatian Technology is 1.12 times less risky than Xiamen Jihong. It trades about 0.04 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Xiamen Jihong Package on September 26, 2024 and sell it today you would earn a total of 104.00 from holding Xiamen Jihong Package or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Xiamen Jihong Package
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Xiamen Jihong Package |
Tianshui Huatian and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Xiamen Jihong
The main advantage of trading using opposite Tianshui Huatian and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Tianshui Huatian vs. Ming Yang Smart | Tianshui Huatian vs. 159681 | Tianshui Huatian vs. 159005 | Tianshui Huatian vs. Loctek Ergonomic Technology |
| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Tianjin Ruixin Technology | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Shandong Sinoglory Health |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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