Correlation Between Tianshui Huatian and Xinjiang Baodi
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By analyzing existing cross correlation between Tianshui Huatian Technology and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Tianshui Huatian and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Xinjiang Baodi.
Diversification Opportunities for Tianshui Huatian and Xinjiang Baodi
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tianshui and Xinjiang is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Xinjiang Baodi
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.88 times more return on investment than Xinjiang Baodi. However, Tianshui Huatian Technology is 1.14 times less risky than Xinjiang Baodi. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 per unit of risk. If you would invest 956.00 in Tianshui Huatian Technology on November 2, 2024 and sell it today you would earn a total of 170.00 from holding Tianshui Huatian Technology or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Xinjiang Baodi Mining |
Tianshui Huatian and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Xinjiang Baodi
The main advantage of trading using opposite Tianshui Huatian and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Tianshui Huatian vs. JuneYao Dairy Co | Tianshui Huatian vs. Shanghai Yaoji Playing | Tianshui Huatian vs. Caihong Display Devices | Tianshui Huatian vs. Yan Tai Shuang |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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