Correlation Between Tianjin Capital and Tibet Huayu
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By analyzing existing cross correlation between Tianjin Capital Environmental and Tibet Huayu Mining, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Tibet Huayu.
Diversification Opportunities for Tianjin Capital and Tibet Huayu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Tibet is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Tibet Huayu go up and down completely randomly.
Pair Corralation between Tianjin Capital and Tibet Huayu
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 2.06 times less risky than Tibet Huayu. The stock trades about 0.0 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Tibet Huayu Mining on October 16, 2024 and sell it today you would earn a total of 408.00 from holding Tibet Huayu Mining or generate 47.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Tibet Huayu Mining
Performance |
| Timeline |
| Tianjin Capital Envi |
| Tibet Huayu Mining |
Tianjin Capital and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Tibet Huayu
The main advantage of trading using opposite Tianjin Capital and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. Kingclean Electric Co | Tianjin Capital vs. Tibet Huayu Mining | Tianjin Capital vs. Guangdong Jingyi Metal | Tianjin Capital vs. JCHX Mining Management |
| Tibet Huayu vs. Beijing Bewinner Communications | Tibet Huayu vs. Shenzhen MYS Environmental | Tibet Huayu vs. City Development Environment | Tibet Huayu vs. Tianjin Capital Environmental |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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