Correlation Between Sichuan Tianqi and China Publishing
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By analyzing existing cross correlation between Sichuan Tianqi Lithium and China Publishing Media, you can compare the effects of market volatilities on Sichuan Tianqi and China Publishing 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 Sichuan Tianqi with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Tianqi and China Publishing.
Diversification Opportunities for Sichuan Tianqi and China Publishing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Tianqi Lithium and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Sichuan Tianqi 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 Sichuan Tianqi Lithium are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Sichuan Tianqi i.e., Sichuan Tianqi and China Publishing go up and down completely randomly.
Pair Corralation between Sichuan Tianqi and China Publishing
Assuming the 90 days trading horizon Sichuan Tianqi is expected to generate 1.33 times less return on investment than China Publishing. In addition to that, Sichuan Tianqi is 1.09 times more volatile than China Publishing Media. It trades about 0.14 of its total potential returns per unit of risk. China Publishing Media is currently generating about 0.2 per unit of volatility. If you would invest 568.00 in China Publishing Media on September 12, 2024 and sell it today you would earn a total of 293.00 from holding China Publishing Media or generate 51.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Tianqi Lithium vs. China Publishing Media
Performance |
| Timeline |
| Sichuan Tianqi Lithium |
| China Publishing Media |
Sichuan Tianqi and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Tianqi and China Publishing
The main advantage of trading using opposite Sichuan Tianqi and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Tianqi position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Sichuan Tianqi vs. V V Food | Sichuan Tianqi vs. Hainan Haiqi Transportation | Sichuan Tianqi vs. Haima Automobile Group | Sichuan Tianqi vs. Xiangyang Automobile Bearing |
| China Publishing vs. HaiXin Foods Co | China Publishing vs. Jilin Chemical Fibre | China Publishing vs. Xilong Chemical Co | China Publishing vs. Great Sun Foods Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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