Correlation Between GUOMAI Culture and Tianshui Huatian
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By analyzing existing cross correlation between GUOMAI Culture Media and Tianshui Huatian Technology, you can compare the effects of market volatilities on GUOMAI Culture and Tianshui Huatian 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 GUOMAI Culture with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Tianshui Huatian.
Diversification Opportunities for GUOMAI Culture and Tianshui Huatian
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GUOMAI and Tianshui is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec and GUOMAI Culture 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 GUOMAI Culture Media are associated (or correlated) with Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of GUOMAI Culture i.e., GUOMAI Culture and Tianshui Huatian go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Tianshui Huatian
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to under-perform the Tianshui Huatian. In addition to that, GUOMAI Culture is 1.43 times more volatile than Tianshui Huatian Technology. It trades about -0.35 of its total potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.19 per unit of volatility. If you would invest 1,207 in Tianshui Huatian Technology on October 12, 2024 and sell it today you would lose (122.00) from holding Tianshui Huatian Technology or give up 10.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Tianshui Huatian Technology
Performance |
| Timeline |
| GUOMAI Culture Media |
| Tianshui Huatian Tec |
GUOMAI Culture and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Tianshui Huatian
The main advantage of trading using opposite GUOMAI Culture and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| GUOMAI Culture vs. Guangzhou KingTeller Technology | GUOMAI Culture vs. Dhc Software Co | GUOMAI Culture vs. Sinofibers Technology Co | GUOMAI Culture vs. Hangzhou Arcvideo Technology |
| Tianshui Huatian vs. Changjiang Publishing Media | Tianshui Huatian vs. Omnijoi Media Corp | Tianshui Huatian vs. Xinxiang Chemical Fiber | Tianshui Huatian vs. GUOMAI Culture Media |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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