Correlation Between Hunan Tyen and Advanced Technology
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By analyzing existing cross correlation between Hunan Tyen Machinery and Advanced Technology Materials, you can compare the effects of market volatilities on Hunan Tyen and Advanced Technology 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 Hunan Tyen with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Advanced Technology.
Diversification Opportunities for Hunan Tyen and Advanced Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunan and Advanced is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and Hunan Tyen 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 Hunan Tyen Machinery are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and Advanced Technology go up and down completely randomly.
Pair Corralation between Hunan Tyen and Advanced Technology
Assuming the 90 days trading horizon Hunan Tyen is expected to generate 1.79 times less return on investment than Advanced Technology. In addition to that, Hunan Tyen is 1.28 times more volatile than Advanced Technology Materials. It trades about 0.02 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.03 per unit of volatility. If you would invest 843.00 in Advanced Technology Materials on October 14, 2024 and sell it today you would earn a total of 247.00 from holding Advanced Technology Materials or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Advanced Technology Materials
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Advanced Technology |
Hunan Tyen and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Advanced Technology
The main advantage of trading using opposite Hunan Tyen and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Hunan Tyen vs. Guangxi Wuzhou Communications | Hunan Tyen vs. Quectel Wireless Solutions | Hunan Tyen vs. Nanjing Putian Telecommunications | Hunan Tyen vs. Suzhou Mingzhi Technology |
| Advanced Technology vs. Dosilicon Co | Advanced Technology vs. Guangzhou Jointas Chemical | Advanced Technology vs. Hunan Tyen Machinery | Advanced Technology vs. Liuzhou Chemical Industry |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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