Correlation Between Shanxi Tond and Tibet Huayu
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By analyzing existing cross correlation between Shanxi Tond Chemical and Tibet Huayu Mining, you can compare the effects of market volatilities on Shanxi Tond and Tibet Huayu 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 Shanxi Tond with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Tond and Tibet Huayu.
Diversification Opportunities for Shanxi Tond and Tibet Huayu
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanxi and Tibet is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Tond Chemical and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining and Shanxi Tond 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 Shanxi Tond Chemical are associated (or correlated) with Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Shanxi Tond i.e., Shanxi Tond and Tibet Huayu go up and down completely randomly.
Pair Corralation between Shanxi Tond and Tibet Huayu
Assuming the 90 days trading horizon Shanxi Tond Chemical is expected to generate 1.49 times more return on investment than Tibet Huayu. However, Shanxi Tond is 1.49 times more volatile than Tibet Huayu Mining. It trades about -0.27 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.49 per unit of risk. If you would invest 576.00 in Shanxi Tond Chemical on October 14, 2024 and sell it today you would lose (86.00) from holding Shanxi Tond Chemical or give up 14.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Tond Chemical vs. Tibet Huayu Mining
Performance |
| Timeline |
| Shanxi Tond Chemical |
| Tibet Huayu Mining |
Shanxi Tond and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Tond and Tibet Huayu
The main advantage of trading using opposite Shanxi Tond and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Tond position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Shanxi Tond vs. Tibet Huayu Mining | Shanxi Tond vs. Hefei Metalforming Mach | Shanxi Tond vs. Beijing HuaYuanYiTong Thermal | Shanxi Tond vs. Xinjiang Baodi Mining |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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