Correlation Between Huafa Industrial and Zhejiang Tailin
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By analyzing existing cross correlation between Huafa Industrial Co and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Huafa Industrial and Zhejiang Tailin 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 Huafa Industrial with a short position of Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Zhejiang Tailin.
Diversification Opportunities for Huafa Industrial and Zhejiang Tailin
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huafa and Zhejiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Huafa Industrial and Zhejiang Tailin
Assuming the 90 days trading horizon Huafa Industrial Co is expected to generate 0.72 times more return on investment than Zhejiang Tailin. However, Huafa Industrial Co is 1.39 times less risky than Zhejiang Tailin. It trades about -0.03 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.02 per unit of risk. If you would invest 878.00 in Huafa Industrial Co on October 16, 2024 and sell it today you would lose (346.00) from holding Huafa Industrial Co or give up 39.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| Huafa Industrial |
| Zhejiang Tailin Bioe |
Huafa Industrial and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Zhejiang Tailin
The main advantage of trading using opposite Huafa Industrial and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| Huafa Industrial vs. Chongqing Changan Automobile | Huafa Industrial vs. Jiangnan Mould Plastic | Huafa Industrial vs. Jiangsu Xinri E Vehicle | Huafa Industrial vs. Changchun Engley Automobile |
| Zhejiang Tailin vs. Southern PublishingMedia Co | Zhejiang Tailin vs. Beijing Kaiwen Education | Zhejiang Tailin vs. Heilongjiang Publishing Media | Zhejiang Tailin vs. Beijing Mainstreets Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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