Correlation Between Tianshui Huatian and Shanghai Shuixing
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shanghai Shuixing Home, you can compare the effects of market volatilities on Tianshui Huatian and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shanghai Shuixing.
Diversification Opportunities for Tianshui Huatian and Shanghai Shuixing
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianshui and Shanghai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shanghai Shuixing
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.13 times more return on investment than Shanghai Shuixing. However, Tianshui Huatian is 1.13 times more volatile than Shanghai Shuixing Home. It trades about 0.03 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of risk. If you would invest 892.00 in Tianshui Huatian Technology on October 16, 2024 and sell it today you would earn a total of 184.00 from holding Tianshui Huatian Technology or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shanghai Shuixing Home |
Tianshui Huatian and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shanghai Shuixing
The main advantage of trading using opposite Tianshui Huatian and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Tianshui Huatian vs. AVCON Information Tech | Tianshui Huatian vs. MayAir Technology Co | Tianshui Huatian vs. Beijing Kaiwen Education | Tianshui Huatian vs. Longmaster Information Tech |
| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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