Correlation Between Huasi Agricultural and Tengda Construction
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By analyzing existing cross correlation between Huasi Agricultural Development and Tengda Construction Group, you can compare the effects of market volatilities on Huasi Agricultural and Tengda Construction 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 Huasi Agricultural with a short position of Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Tengda Construction.
Diversification Opportunities for Huasi Agricultural and Tengda Construction
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Tengda is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Tengda Construction go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Tengda Construction
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.76 times more return on investment than Tengda Construction. However, Huasi Agricultural is 1.76 times more volatile than Tengda Construction Group. It trades about 0.01 of its potential returns per unit of risk. Tengda Construction Group is currently generating about 0.0 per unit of risk. If you would invest 481.00 in Huasi Agricultural Development on September 4, 2024 and sell it today you would lose (35.00) from holding Huasi Agricultural Development or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Tengda Construction Group
Performance |
| Timeline |
| Huasi Agricultural |
| Tengda Construction |
Huasi Agricultural and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Tengda Construction
The main advantage of trading using opposite Huasi Agricultural and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural vs. Bank of China |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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