Correlation Between Tianshui Huatian and Hainan Mining
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By analyzing existing cross correlation between Tianshui Huatian Technology and Hainan Mining Co, you can compare the effects of market volatilities on Tianshui Huatian and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Hainan Mining.
Diversification Opportunities for Tianshui Huatian and Hainan Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshui and Hainan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Hainan Mining go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Hainan Mining
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.22 times more return on investment than Hainan Mining. However, Tianshui Huatian is 1.22 times more volatile than Hainan Mining Co. It trades about -0.16 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.41 per unit of risk. If you would invest 1,180 in Tianshui Huatian Technology on October 16, 2024 and sell it today you would lose (104.00) from holding Tianshui Huatian Technology or give up 8.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Hainan Mining Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Hainan Mining |
Tianshui Huatian and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Hainan Mining
The main advantage of trading using opposite Tianshui Huatian and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Tianshui Huatian vs. Guangdong Qunxing Toys | Tianshui Huatian vs. Beijing Jiaman Dress | Tianshui Huatian vs. Dongjiang Environmental Co | Tianshui Huatian vs. Spring Airlines Co |
| Hainan Mining vs. Shanghai Sanyou Medical | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Dymatic Chemicals | Hainan Mining vs. Fiberhome Telecommunication Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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