Correlation Between Tibet Huayu and Nanhua Bio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and Nanhua Bio Medicine, you can compare the effects of market volatilities on Tibet Huayu and Nanhua Bio 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 Tibet Huayu with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Nanhua Bio.
Diversification Opportunities for Tibet Huayu and Nanhua Bio
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Nanhua is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Tibet Huayu 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 Tibet Huayu Mining are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Nanhua Bio go up and down completely randomly.
Pair Corralation between Tibet Huayu and Nanhua Bio
Assuming the 90 days trading horizon Tibet Huayu is expected to generate 1.13 times less return on investment than Nanhua Bio. But when comparing it to its historical volatility, Tibet Huayu Mining is 1.04 times less risky than Nanhua Bio. It trades about 0.09 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 697.00 in Nanhua Bio Medicine on October 18, 2024 and sell it today you would earn a total of 191.00 from holding Nanhua Bio Medicine or generate 27.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Tibet Huayu Mining |
| Nanhua Bio Medicine |
Tibet Huayu and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Nanhua Bio
The main advantage of trading using opposite Tibet Huayu and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Tibet Huayu vs. New Hope Dairy | Tibet Huayu vs. China Asset Management | Tibet Huayu vs. Chengdu Spaceon Electronics | Tibet Huayu vs. Great Sun Foods Co |
| Nanhua Bio vs. Bank of Communications | Nanhua Bio vs. Telling Telecommunication Holding | Nanhua Bio vs. Bosera CMSK Industrial | Nanhua Bio vs. Tibet Huayu 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |