Correlation Between Zhejiang Juhua and Tibet Huayu
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By analyzing existing cross correlation between Zhejiang Juhua Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Tibet Huayu.
Diversification Opportunities for Zhejiang Juhua and Tibet Huayu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Tibet is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co 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 Zhejiang Juhua 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 Zhejiang Juhua Co 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 Zhejiang Juhua i.e., Zhejiang Juhua and Tibet Huayu go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Tibet Huayu
Assuming the 90 days trading horizon Zhejiang Juhua is expected to generate 1.34 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Zhejiang Juhua Co is 1.89 times less risky than Tibet Huayu. It trades about 0.14 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,333 in Tibet Huayu Mining on September 1, 2024 and sell it today you would earn a total of 106.00 from holding Tibet Huayu Mining or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Zhejiang Juhua |
| Tibet Huayu Mining |
Zhejiang Juhua and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Tibet Huayu
The main advantage of trading using opposite Zhejiang Juhua and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. BTG Hotels Group | Zhejiang Juhua vs. Shenzhen Centralcon Investment | Zhejiang Juhua vs. Harbin Hatou Investment |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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