Correlation Between Tianshui Huatian and Shanghai Broadband
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shanghai Broadband Technology, you can compare the effects of market volatilities on Tianshui Huatian and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shanghai Broadband.
Diversification Opportunities for Tianshui Huatian and Shanghai Broadband
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshui and Shanghai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shanghai Broadband
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to under-perform the Shanghai Broadband. In addition to that, Tianshui Huatian is 1.57 times more volatile than Shanghai Broadband Technology. It trades about -0.07 of its total potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.35 per unit of volatility. If you would invest 338.00 in Shanghai Broadband Technology on August 31, 2024 and sell it today you would earn a total of 72.00 from holding Shanghai Broadband Technology or generate 21.3% 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. Shanghai Broadband Technology
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shanghai Broadband |
Tianshui Huatian and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shanghai Broadband
The main advantage of trading using opposite Tianshui Huatian and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. NAURA Technology Group | Tianshui Huatian vs. APT Medical | Tianshui Huatian vs. Contemporary Amperex Technology |
| Shanghai Broadband vs. Fuda Alloy Materials | Shanghai Broadband vs. Miracll Chemicals Co | Shanghai Broadband vs. Guangzhou Dongfang Hotel | Shanghai Broadband vs. Shenzhen Noposion Agrochemicals |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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