Correlation Between Huasi Agricultural and Tianfeng Securities
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By analyzing existing cross correlation between Huasi Agricultural Development and Tianfeng Securities Co, you can compare the effects of market volatilities on Huasi Agricultural and Tianfeng Securities 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 Tianfeng Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Tianfeng Securities.
Diversification Opportunities for Huasi Agricultural and Tianfeng Securities
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Tianfeng is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Tianfeng Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianfeng Securities 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 Tianfeng Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianfeng Securities has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Tianfeng Securities go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Tianfeng Securities
Assuming the 90 days trading horizon Huasi Agricultural is expected to generate 3.45 times less return on investment than Tianfeng Securities. But when comparing it to its historical volatility, Huasi Agricultural Development is 1.46 times less risky than Tianfeng Securities. It trades about 0.04 of its potential returns per unit of risk. Tianfeng Securities Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 294.00 in Tianfeng Securities Co on September 3, 2024 and sell it today you would earn a total of 187.00 from holding Tianfeng Securities Co or generate 63.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Tianfeng Securities Co
Performance |
| Timeline |
| Huasi Agricultural |
| Tianfeng Securities |
Huasi Agricultural and Tianfeng Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Tianfeng Securities
The main advantage of trading using opposite Huasi Agricultural and Tianfeng Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Tianfeng Securities 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 Tianfeng Securities will offset losses from the drop in Tianfeng Securities' long position.| Huasi Agricultural vs. PetroChina Co Ltd | Huasi Agricultural vs. China Mobile Limited | Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. China Life Insurance |
| Tianfeng Securities vs. Huasi Agricultural Development | Tianfeng Securities vs. Guilin Seamild Foods | Tianfeng Securities vs. V V Food | Tianfeng Securities 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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