Correlation Between Fujian Nanwang and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and Tibet Huayu Mining, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Tibet Huayu.
Diversification Opportunities for Fujian Nanwang and Tibet Huayu
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Tibet is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Tibet Huayu go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Tibet Huayu
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.24 times less risky than Tibet Huayu. The stock trades about -0.05 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 1,234 in Tibet Huayu Mining on November 2, 2024 and sell it today you would earn a total of 147.00 from holding Tibet Huayu Mining or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.09% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Tibet Huayu Mining
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Tibet Huayu Mining |
Fujian Nanwang and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Tibet Huayu
The main advantage of trading using opposite Fujian Nanwang and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
| Tibet Huayu vs. Henan Shuanghui Investment | Tibet Huayu vs. Aluminum Corp of | Tibet Huayu vs. Cultural Investment Holdings | Tibet Huayu vs. Ye Chiu Metal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges |