Correlation Between Hang Xiao and Tianshui Huatian
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By analyzing existing cross correlation between Hang Xiao Steel and Tianshui Huatian Technology, you can compare the effects of market volatilities on Hang Xiao 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 Hang Xiao with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Tianshui Huatian.
Diversification Opportunities for Hang Xiao and Tianshui Huatian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Tianshui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel 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 Hang Xiao 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 Hang Xiao Steel 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 Hang Xiao i.e., Hang Xiao and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Hang Xiao and Tianshui Huatian
Assuming the 90 days trading horizon Hang Xiao is expected to generate 5.91 times less return on investment than Tianshui Huatian. But when comparing it to its historical volatility, Hang Xiao Steel is 1.92 times less risky than Tianshui Huatian. It trades about 0.03 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Tianshui Huatian Technology on August 26, 2024 and sell it today you would earn a total of 90.00 from holding Tianshui Huatian Technology or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Hang Xiao Steel |
| Tianshui Huatian Tec |
Hang Xiao and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Tianshui Huatian
The main advantage of trading using opposite Hang Xiao and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao 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.| Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. Agricultural Bank of | Hang Xiao vs. China Construction Bank | Hang Xiao vs. Bank of China |
| Tianshui Huatian vs. Harbin Hatou Investment | Tianshui Huatian vs. BTG Hotels Group | Tianshui Huatian vs. Hubei Geoway Investment | Tianshui Huatian vs. Huatian Hotel Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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