Correlation Between Tianshui Huatian and Kangping Technology
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By analyzing existing cross correlation between Tianshui Huatian Technology and Kangping Technology Co, you can compare the effects of market volatilities on Tianshui Huatian and Kangping 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Kangping Technology.
Diversification Opportunities for Tianshui Huatian and Kangping Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and Kangping is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Kangping Technology go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Kangping Technology
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.78 times more return on investment than Kangping Technology. However, Tianshui Huatian Technology is 1.28 times less risky than Kangping Technology. It trades about 0.05 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.03 per unit of risk. If you would invest 913.00 in Tianshui Huatian Technology on September 4, 2024 and sell it today you would earn a total of 295.00 from holding Tianshui Huatian Technology or generate 32.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Kangping Technology Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Kangping Technology |
Tianshui Huatian and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Kangping Technology
The main advantage of trading using opposite Tianshui Huatian and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Kangping 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 Kangping Technology will offset losses from the drop in Kangping Technology'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 |
| Kangping Technology vs. Biwin Storage Technology | Kangping Technology vs. PetroChina Co Ltd | Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. China Construction Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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