Correlation Between Hunan Tyen and CSG Holding
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By analyzing existing cross correlation between Hunan Tyen Machinery and CSG Holding Co, you can compare the effects of market volatilities on Hunan Tyen and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and CSG Holding.
Diversification Opportunities for Hunan Tyen and CSG Holding
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hunan and CSG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and CSG Holding go up and down completely randomly.
Pair Corralation between Hunan Tyen and CSG Holding
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 2.13 times more return on investment than CSG Holding. However, Hunan Tyen is 2.13 times more volatile than CSG Holding Co. It trades about 0.08 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.1 per unit of risk. If you would invest 468.00 in Hunan Tyen Machinery on October 24, 2024 and sell it today you would earn a total of 90.00 from holding Hunan Tyen Machinery or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. CSG Holding Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| CSG Holding |
Hunan Tyen and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and CSG Holding
The main advantage of trading using opposite Hunan Tyen and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Hunan Tyen vs. China Longyuan Power | Hunan Tyen vs. PetroChina Co Ltd | Hunan Tyen vs. Guangxi Guiguan Electric | Hunan Tyen vs. Yantai North Andre |
| CSG Holding vs. Hongrun Construction Group | CSG Holding vs. Qingdao Foods Co | CSG Holding vs. Gan Yuan Foods | CSG Holding vs. Hunan Tyen Machinery |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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