Correlation Between Tianshui Huatian and Xian LONGi
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By analyzing existing cross correlation between Tianshui Huatian Technology and Xian LONGi Silicon, you can compare the effects of market volatilities on Tianshui Huatian and Xian LONGi 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 Xian LONGi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Xian LONGi.
Diversification Opportunities for Tianshui Huatian and Xian LONGi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Xian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Xian LONGi Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian LONGi Silicon 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 Xian LONGi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian LONGi Silicon has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Xian LONGi go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Xian LONGi
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.96 times more return on investment than Xian LONGi. However, Tianshui Huatian Technology is 1.04 times less risky than Xian LONGi. It trades about 0.1 of its potential returns per unit of risk. Xian LONGi Silicon is currently generating about 0.02 per unit of risk. If you would invest 823.00 in Tianshui Huatian Technology on September 3, 2024 and sell it today you would earn a total of 361.00 from holding Tianshui Huatian Technology or generate 43.86% 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. Xian LONGi Silicon
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Xian LONGi Silicon |
Tianshui Huatian and Xian LONGi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Xian LONGi
The main advantage of trading using opposite Tianshui Huatian and Xian LONGi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Xian LONGi 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 Xian LONGi will offset losses from the drop in Xian LONGi's long position.| Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Construction Bank | Tianshui Huatian vs. Postal Savings Bank | Tianshui Huatian vs. Bank of Communications |
| Xian LONGi vs. Yangmei Chemical Co | Xian LONGi vs. China Life Insurance | Xian LONGi vs. Tianshui Huatian Technology | Xian LONGi vs. Guangzhou Jointas Chemical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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