Correlation Between Tianshui Huatian and Sinofibers Technology
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By analyzing existing cross correlation between Tianshui Huatian Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Tianshui Huatian and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Sinofibers Technology.
Diversification Opportunities for Tianshui Huatian and Sinofibers Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Sinofibers is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Sinofibers Technology
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to under-perform the Sinofibers Technology. In addition to that, Tianshui Huatian is 1.11 times more volatile than Sinofibers Technology Co. It trades about -0.16 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.16 per unit of volatility. If you would invest 3,088 in Sinofibers Technology Co on September 1, 2024 and sell it today you would lose (375.00) from holding Sinofibers Technology Co or give up 12.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Sinofibers Technology |
Tianshui Huatian and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Sinofibers Technology
The main advantage of trading using opposite Tianshui Huatian and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
| Sinofibers Technology vs. Mengtian Home Group | Sinofibers Technology vs. Qtone Education Group | Sinofibers Technology vs. Time Publishing and | Sinofibers Technology vs. Dymatic Chemicals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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