Correlation Between Xizi Clean and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xizi Clean Energy and Tibet Huayu Mining, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Tibet Huayu.
Diversification Opportunities for Xizi Clean and Tibet Huayu
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xizi and Tibet is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Tibet Huayu go up and down completely randomly.
Pair Corralation between Xizi Clean and Tibet Huayu
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.22 times less risky than Tibet Huayu. The stock trades about -0.01 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,203 in Tibet Huayu Mining on October 30, 2024 and sell it today you would earn a total of 178.00 from holding Tibet Huayu Mining or generate 14.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xizi Clean Energy vs. Tibet Huayu Mining
Performance |
Timeline |
Xizi Clean Energy |
Tibet Huayu Mining |
Xizi Clean and Tibet Huayu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xizi Clean and Tibet Huayu
The main advantage of trading using opposite Xizi Clean and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.Xizi Clean vs. Shannon Semiconductor Technology | Xizi Clean vs. Ningbo Ligong Online | Xizi Clean vs. Zbit Semiconductor A | Xizi Clean vs. CICC Fund Management |
Tibet Huayu vs. Shandong Sanyuan Biotechnology | Tibet Huayu vs. Iat Automobile Technology | Tibet Huayu vs. Jinhe Biotechnology Co | Tibet Huayu vs. Shanghai Rightongene Biotechnology |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |