Correlation Between Tibet Huayu and Xinjiang Tianshun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Tibet Huayu and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Xinjiang Tianshun.
Diversification Opportunities for Tibet Huayu and Xinjiang Tianshun
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and Xinjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Tibet Huayu and Xinjiang Tianshun
Assuming the 90 days trading horizon Tibet Huayu is expected to generate 2.26 times less return on investment than Xinjiang Tianshun. In addition to that, Tibet Huayu is 1.17 times more volatile than Xinjiang Tianshun Supply. It trades about 0.02 of its total potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.06 per unit of volatility. If you would invest 1,125 in Xinjiang Tianshun Supply on September 5, 2024 and sell it today you would earn a total of 215.00 from holding Xinjiang Tianshun Supply or generate 19.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Tibet Huayu Mining |
| Xinjiang Tianshun Supply |
Tibet Huayu and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Xinjiang Tianshun
The main advantage of trading using opposite Tibet Huayu and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun'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 |
| Xinjiang Tianshun vs. Innovative Medical Management | Xinjiang Tianshun vs. Sino Platinum Metals Co | Xinjiang Tianshun vs. Tibet Huayu Mining | Xinjiang Tianshun vs. Huaxia Fund Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |