Correlation Between Tianshui Huatian and Zhongtong Guomai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianshui Huatian Technology and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Tianshui Huatian and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Zhongtong Guomai.
Diversification Opportunities for Tianshui Huatian and Zhongtong Guomai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and Zhongtong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Zhongtong Guomai
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.58 times more return on investment than Zhongtong Guomai. However, Tianshui Huatian Technology is 1.74 times less risky than Zhongtong Guomai. It trades about -0.26 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.21 per unit of risk. If you would invest 1,373 in Tianshui Huatian Technology on September 13, 2024 and sell it today you would lose (166.00) from holding Tianshui Huatian Technology or give up 12.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Zhongtong Guomai Com |
Tianshui Huatian and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Zhongtong Guomai
The main advantage of trading using opposite Tianshui Huatian and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Tianshui Huatian vs. Hefei Metalforming Mach | Tianshui Huatian vs. Harbin Air Conditioning | Tianshui Huatian vs. Western Metal Materials | Tianshui Huatian vs. Allwin Telecommunication Co |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |