Correlation Between Tianshui Huatian and Shandong Sinoglory
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shandong Sinoglory Health, you can compare the effects of market volatilities on Tianshui Huatian and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shandong Sinoglory.
Diversification Opportunities for Tianshui Huatian and Shandong Sinoglory
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshui and Shandong is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shandong Sinoglory
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.28 times more return on investment than Shandong Sinoglory. However, Tianshui Huatian is 1.28 times more volatile than Shandong Sinoglory Health. It trades about -0.06 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.09 per unit of risk. If you would invest 1,168 in Tianshui Huatian Technology on October 18, 2024 and sell it today you would lose (47.00) from holding Tianshui Huatian Technology or give up 4.02% 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. Shandong Sinoglory Health
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shandong Sinoglory Health |
Tianshui Huatian and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shandong Sinoglory
The main advantage of trading using opposite Tianshui Huatian and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Tianshui Huatian vs. Tongxing Environmental Protection | Tianshui Huatian vs. Central Plains Environment | Tianshui Huatian vs. XinJiang GuoTong Pipeline | Tianshui Huatian vs. Shandong Iron and |
| Shandong Sinoglory vs. Tianshui Huatian Technology | Shandong Sinoglory vs. Innovative Medical Management | Shandong Sinoglory vs. HUAQIN TECHNOLOGY LTD | Shandong Sinoglory vs. China Asset Management |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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