Correlation Between Tianshui Huatian and Zhuzhou Feilu
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By analyzing existing cross correlation between Tianshui Huatian Technology and Zhuzhou Feilu High Tech, you can compare the effects of market volatilities on Tianshui Huatian and Zhuzhou Feilu 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 Zhuzhou Feilu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Zhuzhou Feilu.
Diversification Opportunities for Tianshui Huatian and Zhuzhou Feilu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Zhuzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Zhuzhou Feilu High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Feilu High 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 Zhuzhou Feilu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Feilu High has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Zhuzhou Feilu go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Zhuzhou Feilu
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to under-perform the Zhuzhou Feilu. But the stock apears to be less risky and, when comparing its historical volatility, Tianshui Huatian Technology is 1.06 times less risky than Zhuzhou Feilu. The stock trades about -0.35 of its potential returns per unit of risk. The Zhuzhou Feilu High Tech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Zhuzhou Feilu High Tech on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Zhuzhou Feilu High Tech or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Zhuzhou Feilu High Tech
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Zhuzhou Feilu High |
Tianshui Huatian and Zhuzhou Feilu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Zhuzhou Feilu
The main advantage of trading using opposite Tianshui Huatian and Zhuzhou Feilu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Zhuzhou Feilu 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 Zhuzhou Feilu will offset losses from the drop in Zhuzhou Feilu's long position.| Tianshui Huatian vs. Gansu Jiu Steel | Tianshui Huatian vs. Shandong Mining Machinery | Tianshui Huatian vs. Aba Chemicals Corp | Tianshui Huatian vs. BlueFocus Communication Group |
| Zhuzhou Feilu vs. Zhejiang Xiantong RubberPlastic | Zhuzhou Feilu vs. Hengerda New Materials | Zhuzhou Feilu vs. Eastern Air Logistics | Zhuzhou Feilu vs. Kunwu Jiuding 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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