Correlation Between Jiangsu Zhongtian and Tibet Huayu
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Tibet Huayu Mining, you can compare the effects of market volatilities on Jiangsu Zhongtian 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 Jiangsu Zhongtian with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Tibet Huayu.
Diversification Opportunities for Jiangsu Zhongtian and Tibet Huayu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Tibet is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Tibet Huayu go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Tibet Huayu
Assuming the 90 days trading horizon Jiangsu Zhongtian Technology is expected to generate 0.66 times more return on investment than Tibet Huayu. However, Jiangsu Zhongtian Technology is 1.5 times less risky than Tibet Huayu. It trades about -0.68 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.49 per unit of risk. If you would invest 1,562 in Jiangsu Zhongtian Technology on October 14, 2024 and sell it today you would lose (250.00) from holding Jiangsu Zhongtian Technology or give up 16.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Tibet Huayu Mining
Performance |
| Timeline |
| Jiangsu Zhongtian |
| Tibet Huayu Mining |
Jiangsu Zhongtian and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongtian and Tibet Huayu
The main advantage of trading using opposite Jiangsu Zhongtian and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian 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.| Jiangsu Zhongtian vs. Pengxin International Mining | Jiangsu Zhongtian vs. Jiugui Liquor Co | Jiangsu Zhongtian vs. Rising Nonferrous Metals | Jiangsu Zhongtian vs. Hubei Geoway 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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