Correlation Between Tianshui Huatian and Ping An
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By analyzing existing cross correlation between Tianshui Huatian Technology and Ping An Insurance, you can compare the effects of market volatilities on Tianshui Huatian and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Ping An.
Diversification Opportunities for Tianshui Huatian and Ping An
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshui and Ping is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Ping An go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Ping An
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.51 times more return on investment than Ping An. However, Tianshui Huatian is 1.51 times more volatile than Ping An Insurance. It trades about -0.02 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.07 per unit of risk. If you would invest 1,166 in Tianshui Huatian Technology on October 26, 2024 and sell it today you would lose (34.00) from holding Tianshui Huatian Technology or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Ping An Insurance
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Ping An Insurance |
Tianshui Huatian and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Ping An
The main advantage of trading using opposite Tianshui Huatian and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Tianshui Huatian vs. New Hope Dairy | Tianshui Huatian vs. Guilin Seamild Foods | Tianshui Huatian vs. Guocheng Mining Co | Tianshui Huatian vs. Suzhou Industrial Park |
| Ping An vs. Montage Technology Co | Ping An vs. Tianshui Huatian Technology | Ping An vs. Hainan Mining Co | Ping An vs. Hubei Forbon Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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