Correlation Between Tianshui Huatian and Gansu Jiu
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By analyzing existing cross correlation between Tianshui Huatian Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Tianshui Huatian and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Gansu Jiu.
Diversification Opportunities for Tianshui Huatian and Gansu Jiu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Gansu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Gansu Jiu go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Gansu Jiu
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.24 times more return on investment than Gansu Jiu. However, Tianshui Huatian is 1.24 times more volatile than Gansu Jiu Steel. It trades about 0.05 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.03 per unit of risk. If you would invest 876.00 in Tianshui Huatian Technology on September 12, 2024 and sell it today you would earn a total of 319.00 from holding Tianshui Huatian Technology or generate 36.42% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Gansu Jiu Steel |
Tianshui Huatian and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Gansu Jiu
The main advantage of trading using opposite Tianshui Huatian and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu'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 |
| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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