Correlation Between Tianshui Huatian and HeBei Jinniu
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By analyzing existing cross correlation between Tianshui Huatian Technology and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Tianshui Huatian and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and HeBei Jinniu.
Diversification Opportunities for Tianshui Huatian and HeBei Jinniu
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianshui and HeBei is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Tianshui Huatian and HeBei Jinniu
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.99 times more return on investment than HeBei Jinniu. However, Tianshui Huatian Technology is 1.01 times less risky than HeBei Jinniu. It trades about 0.03 of its potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.01 per unit of risk. If you would invest 924.00 in Tianshui Huatian Technology on October 25, 2024 and sell it today you would earn a total of 219.00 from holding Tianshui Huatian Technology or generate 23.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Tianshui Huatian Tec |
| HeBei Jinniu Chemical |
Tianshui Huatian and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and HeBei Jinniu
The main advantage of trading using opposite Tianshui Huatian and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Tianshui Huatian vs. Western Metal Materials | Tianshui Huatian vs. Sihui Fuji Electronics | Tianshui Huatian vs. Ningbo Kangqiang Electronics | Tianshui Huatian vs. Techshine Electronics Co |
| HeBei Jinniu vs. Zijin Mining Group | HeBei Jinniu vs. Wanhua Chemical Group | HeBei Jinniu vs. Baoshan Iron Steel | HeBei Jinniu 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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