Correlation Between Tibet Huayu and Hunan Investment
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By analyzing existing cross correlation between Tibet Huayu Mining and Hunan Investment Group, you can compare the effects of market volatilities on Tibet Huayu and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Hunan Investment.
Diversification Opportunities for Tibet Huayu and Hunan Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Hunan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Hunan Investment go up and down completely randomly.
Pair Corralation between Tibet Huayu and Hunan Investment
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.38 times more return on investment than Hunan Investment. However, Tibet Huayu is 1.38 times more volatile than Hunan Investment Group. It trades about 0.02 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.01 per unit of risk. If you would invest 1,277 in Tibet Huayu Mining on October 29, 2024 and sell it today you would earn a total of 127.00 from holding Tibet Huayu Mining or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Hunan Investment Group
Performance |
| Timeline |
| Tibet Huayu Mining |
| Hunan Investment |
Tibet Huayu and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Hunan Investment
The main advantage of trading using opposite Tibet Huayu and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Hunan Investment vs. Marssenger Kitchenware Co | Hunan Investment vs. Fujian Anjoy Foods | Hunan Investment vs. Xinjiang Baodi Mining | Hunan Investment vs. Anhui Deli Household |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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