Correlation Between Hunan Tyen and Xinya Electronic
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By analyzing existing cross correlation between Hunan Tyen Machinery and Xinya Electronic Co, you can compare the effects of market volatilities on Hunan Tyen and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Xinya Electronic.
Diversification Opportunities for Hunan Tyen and Xinya Electronic
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hunan and Xinya is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and Xinya Electronic go up and down completely randomly.
Pair Corralation between Hunan Tyen and Xinya Electronic
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 0.97 times more return on investment than Xinya Electronic. However, Hunan Tyen Machinery is 1.03 times less risky than Xinya Electronic. It trades about 0.04 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.0 per unit of risk. If you would invest 594.00 in Hunan Tyen Machinery on October 17, 2024 and sell it today you would earn a total of 11.00 from holding Hunan Tyen Machinery or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Xinya Electronic Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Xinya Electronic |
Hunan Tyen and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Xinya Electronic
The main advantage of trading using opposite Hunan Tyen and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Hunan Tyen vs. Agricultural Bank of | Hunan Tyen vs. Industrial and Commercial | Hunan Tyen vs. Bank of China | Hunan Tyen vs. PetroChina Co Ltd |
| Xinya Electronic vs. Weichai Heavy Machinery | Xinya Electronic vs. Zhejiang Yinlun Machinery | Xinya Electronic vs. Hunan Tyen Machinery | Xinya Electronic vs. Sinomach General 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 Stocks Directory module to find actively traded stocks across global markets.
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