Correlation Between Longxing Chemical and Tibet Huayu
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By analyzing existing cross correlation between Longxing Chemical Stock and Tibet Huayu Mining, you can compare the effects of market volatilities on Longxing Chemical 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 Longxing Chemical with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Tibet Huayu.
Diversification Opportunities for Longxing Chemical and Tibet Huayu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Longxing and Tibet is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock 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 Longxing Chemical 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 Longxing Chemical Stock 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 Longxing Chemical i.e., Longxing Chemical and Tibet Huayu go up and down completely randomly.
Pair Corralation between Longxing Chemical and Tibet Huayu
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 2.26 times more return on investment than Tibet Huayu. However, Longxing Chemical is 2.26 times more volatile than Tibet Huayu Mining. It trades about -0.12 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.54 per unit of risk. If you would invest 578.00 in Longxing Chemical Stock on October 13, 2024 and sell it today you would lose (69.00) from holding Longxing Chemical Stock or give up 11.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Tibet Huayu Mining
Performance |
| Timeline |
| Longxing Chemical Stock |
| Tibet Huayu Mining |
Longxing Chemical and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Tibet Huayu
The main advantage of trading using opposite Longxing Chemical and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical 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.| Longxing Chemical vs. State Grid InformationCommunication | Longxing Chemical vs. China World Trade | Longxing Chemical vs. Quectel Wireless Solutions | Longxing Chemical vs. Eastroc Beverage Group |
| Tibet Huayu vs. Jiajia Food Group | Tibet Huayu vs. Zhongshan Public Utilities | Tibet Huayu vs. Digiwin Software Co | Tibet Huayu vs. Ping An Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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